Nvidia and Sandisk Market Comparison
Nvidia (NASDAQ: NVDA) leads the market in data center GPUs and networking, with a 46% stock increase over the past year. In contrast, Sandisk (NASDAQ: SNDK), the fifth-largest supplier of NAND flash memory, saw its shares surge by 1,220% during the same period. Hedge fund managers Cliff Asness and Steven Schonfeld recently favored Nvidia, boosting their holdings significantly while reducing their investments in Sandisk.
According to research from Bernstein and TD Cowen, GPUs and networking constitute over 50% of the total cost of an AI data center, whereas data storage systems contribute only 1%. This places Nvidia in a stronger market position with a gross margin of 75%, compared to Sandisk’s 51%. Nvidia’s adjusted earnings increased by 82% last quarter, and it trades at 38 times adjusted earnings, a discount compared to its two-year average of 53, indicating a less risky investment than Sandisk, which trades at 83 times adjusted earnings due to the ongoing memory chip supply shortage.
