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Which Tech Stock is Better: Amazon or NVIDIA

Amazon Inc. (NASDAQ:AAPL)

Shares of Amazon have nearly doubled in price this year, but does that mean that it’s too late to buy?

In our opinion, Amazon has a lot of fuel left in the tank and is chock-full of innovative ideas to bring the business to the next level.

Amazon has proved to be the absolute leader in e-commerce by accounting for nearly 50% of all U.S. e-commerce transactions.  The company has grown from a small-scale rinky-dink office, with a desk made from a wooden door, to a corporation valued at over $1 trillion.

Through years of understanding market trends and building a top-of-the-line e-commerce platform, Amazon has made their way to the top.  They have begun diving into other services which have proved to be lucrative such as their Amazon Web Services (AWS), acquisition of Whole Foods, and recent move into the health care sector.

Their Web Services sector has shown considerable growth since its birth, raising from just $1 billion in Q1 2014, to $6.1 billion in Q2 2018.  Amazon Web Services offers cloud-based software solutions for individuals, businesses, and even governments.  Recently, to compete with Microsoft’s new Azure stack, Amazon has begun to search for someone to market their AWS to health care companies.

In addition to their web services, Amazon also recently acquired Whole Foods as their newest brick-and-mortar addition.  The company plans to bring price cuts to the store, as well as develop their own e-commerce platform for the stores.  Additionally, they plan to offer some of Amazon’s electronics inside of the newly acquired stores.

NVIDIA Corporation (NASDAQ:NVDA)

Graphics processing units are in virtually any device with a display screen.  NVIDIA just so happens to be the industry leader in this technology.  Recently, a strange phenomenon has struck the GPU market sending sales through the roof: Cryptocurrency.  Most cryptocurrency requires that the ‘coins’ are ‘mined.’  This is done through advanced computers, opposed to advanced drilling machinery.  In order to a higher efficiency when mining cryptocurrency you will need to have the best possible graphics processing unit.

In the past year or so as Bitcoin made its run to $19,000, NVIDIA has seen exceptional growth as well.  As mentioned before, this is because people need their equipment in order to mine cryptocurrency.

If you’ve been following Bitcoin, you’d know that the $19,000 price point did not hold for long.  Currently the cryptocurrency is trading at $6,448 a coin., less than half its highest value.

Since the crash of cryptocurrency, NVIDIA has made a formal announcement that the sales from crypto-mining related buyers is starting to die down.

This is not entirely negative, as NVIDIA also has a new chipset coming out which is tailored to take on the $250 billion video editing and special effect industry.  This new chip set is said to be the “Holy Grail” of GPU’s.

 

 

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