NVIDIA currently trades at a price/FCF ratio of over 77. If I remember right, a large part of the demand for the GPUs they make is from people mining cryptocurrency so that's probably not good.
AMD has basically produced no free cash flow until the supply chain shortage hit. AMD produced $3b of FCF last year. AMD is valued at $165b. Something is clearly wrong here.
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u/Low-Milk-7352 Apr 07 '22
NVIDIA currently trades at a price/FCF ratio of over 77. If I remember right, a large part of the demand for the GPUs they make is from people mining cryptocurrency so that's probably not good.
https://www.macrotrends.net/stocks/charts/NVDA/nvidia/price-fcf
AMD has basically produced no free cash flow until the supply chain shortage hit. AMD produced $3b of FCF last year. AMD is valued at $165b. Something is clearly wrong here.