Investing in Gaming Stocks and Analyzing AMD’s New GPU and CPU Innovations

When it comes to investing in gaming stocks, there are a few key players in the market. The three publicly traded gaming companies of which I am aware are Electronic Arts (EA), Activision-Blizzard (ATVI), and Take Two Interactive (TTWO). This article will analyze these companies based on various criteria and discuss the potential of AMD's new Navi GPUs and Ryzen 3 series CPUs.

Current Landscape of Gaming Stocks

The gaming industry is evolving at a rapid pace, with new technologies and platforms constantly emerging. Companies like EA, ATVI, and TTWO have established themselves as key players in the industry. Their track records, IP portfolios, and future potential are critical factors to consider when making an investment decision.

Three Gaming Giants to Consider

Electronic Arts (EA): EA has a strong track record of consistent profits and sales. Their intellectual property (IP) portfolio includes popular franchises like Madden NFL, Need for Speed, and Star Wars Battlefront. However, EA's long-term growth potential may be more volatile. Activision-Blizzard (ATVI): ATVI also offers robust franchises such as Call of Duty, World of Warcraft, and Overwatch. The company is known for its innovative approach and high-quality IP. While ATVI can be more volatile, it offers strong opportunities for long-term growth. Take Two Interactive (TTWO): TTWO is well-regarded for its management and consistent track record. The company's franchises like Fallout, GTA, and BioShock have a strong player base. Cramer has been a consistent supporter of this company.

Investment Criteria for Gaming Stocks

When evaluating these gaming companies, it is important to use the same criteria as you would for any other company:

N1. Annual growth rate of both revenues and profits: Game companies must maintain steady growth to remain competitive. N2. Profit to Earnings PE ratio: A lower PE ratio indicates that the company's stock is undervalued relative to its earnings per share. N3. Profit to Earnings Growth PEG ratio: The PEG ratio compares the earnings growth rate to the PE ratio. A ratio below 2.0 is typically considered undervalued.

Analysis of Take Two Interactive (TTWO)

Take Two Interactive (TTWO) has consistently shown strong performance. The CEO of TTWO has been on Jim Cramer's show multiple times, and Cramer consistently praises the company and its management. I have also invested in TTWO, and I continue to hold shares. The company's resilience in the market, even after short-term drops, is a clear indicator of its strength.

AMD: A Flashpoint for Computing Innovations

AMD is making waves in the computing world with its new advancements in GPUs and CPUs. The Navi GPUs, based on AMD's 7nm process, are impressively priced. You can achieve GTX1080-grade performance for around $250. This is a significant improvement over legacy GPUs.

AMD's Ryzen 3 series CPUs are also noteworthy. The Ryzen 7 3700, a 7nm processor, is expected to deliver 12 cores, a base frequency of 3.8GHz, and a turbo frequency of 4.6GHz at a more affordable price point of $249. Additionally, it comes with a 95W TDP (Thermal Design Power), making it a highly efficient choice.

AMD's leap to 7nm technology is a significant advantage over Intel's 14nm. This technological edge could give AMD an unfair advantage in the market, especially as consumers and professionals seek energy-efficient and high-performance computing solutions.

Conclusion

In conclusion, when considering gaming stocks and computing hardware, it is crucial to evaluate both the current performance and potential growth of the companies and technologies. TTWO stands out for its consistent performance and strong management, while AMD's new Navi GPUs and Ryzen CPUs offer compelling value and performance. When making investment decisions, it is advisable to maintain a diversified portfolio and not to invest more than 20% in any single stock or technology.