© Reuters. Microsoft vs. NVIDIA: Which Mega-Cap Stock is a Better Buy?
Although technology-industry stocks experienced a sell-off earlier this year, with investors rotating out of the sector to capitalize on the economic recovery by betting on cyclical stocks, strong quarterly financials, the continued need for advanced technology from almost all industries, and the resurgence of COVID-19 in several countries are reviving investor interest in the tech industry. Against a backdrop of continuing product launches and collaborations, both Microsoft (MSFT) and Nvidia (NVDA) are expected to benefit handsomely. But let’s find out which of these stocks is a better buy now.Microsoft Corporation (NASDAQ:) and NVIDIA Corporation (NASDAQ:) are two well-established players in the technology space. With a $2.08 trillion market capitalization, MSFT develops, supports, licenses and sells a range of software products, services and solutions worldwide. It also designs, manufactures, and sells devices that include PCs, tablets, gaming and entertainment consoles, other intelligent devices and related accessories. NVDA designs and manufactures computer graphics processors, chipsets, and related multimedia software that are used in the gaming, professional visualization, datacenter, and automotive markets. It has a market capitalization of $495.98 billion.
While the technology industry witnessed a sell-off earlier this year, the continuation of remote working, at least in-part, along with a rising need for advanced technology by almost all industries, is motivating investors to bet on this space again. The resurgence of COVID-19 in several countries is also increasing investors’ optimism about the industry’s prospects. Investors’ interest in this space is evident in the iShares U.S. Technology ETF’s (IYW) 7.3% returns over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 2.1% returns. So, we believe both MSFT and NVDA, owing to their market dominance and fundamental strength, should benefit substantially in the coming months.
While MSFT gained 9.8% over the past month, NVDA returned 14%. In terms of their past six month’s performance, NVDA is a clear winner with 49.9% gains versus MSFT’s 26.3% returns. So, which of these stocks is a better pick now? Let’s find out.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.