With 2014 just starting, investors may be thinking about which stocks they want in their portfolios throughout the year. In this segment of Two Fools Debate, Fool editor Jamal Carnette and contributor Sam Mattera discuss whether investors should own NVIDIA (NASDAQ:NVDA) in 2014.
Sam thinks NVIDIA is an attractive growth stock. Although NVIDIA's mobile chips are seeing competition from Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC), he notes the NVIDIA's continued push into new markets: this past week, NVIDIA announced a partnership that will have its mobile chips power several cars' infotainment systems, and it unveiled its new, high-powered Tegra K1. Sam also thinks NVIDIA could grow its market share in GPUs with its new G-Sync technology.
In contrast, Jamal thinks NVIDIA could be overvalued. Its current price-to-earnings ratio, near 20, makes it a more expensive stock than its rivals. That's particularly detrimental, as its seems the chip business is becoming increasingly commoditized. Jamal also notes that NVIDIA's tablet chips aren't to be found in many tablets.
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Jamal Carnette and Sam Mattera have no position in any stocks mentioned. The Motley Fool recommends Intel and NVIDIA and owns shares of Intel and Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.