The thesis
Compare companies
Two or more companies side by side: each one's valuation, investment case, and what supports or challenges it, so the comparison rests on the cases, not just ratios.
TOOL
comparecurl https://mcp.optimistfi.com/mcp \
-H "Content-Type: application/json" \
-H "Accept: application/json, text/event-stream" \
-d '{"jsonrpc":"2.0","id":1,"method":"tools/call","params":{"name":"compare","arguments":{"entities":["NVDA","AMD"]}}}'When a model calls it
Models choose a tool from its description. This is the one the server publishes:
Two or more companies side by side: each one's valuation, investment case, and what supports or challenges it, so the comparison rests on the cases, not just ratios. Use when the user asks: X vs Y; which is the better buy; is X or Y more defensive. response_mode=plain for beginners. Not for: one company → answer. Args: entities (2-5).
- X vs Y
- which is the better buy
- is X or Y more defensive
For something else: answer.
Parameters
entitiesarray of stringrequired
Two to five companies or tickers to set side by side.
response_modestringdefault "standard"
standard- the full read with the investment case
plain- a short beginner-friendly explanation at the reading_level grade
Accepts standard, plain.
reading_levelinteger
With response_mode plain, who the explanation is written for: 5 a complete beginner, 10 a general reader, 13 an informed investor (unset reads as 13, with precise figures).
Accepts 5, 10, 13.
Response
A real response to the example call, trimmed: lists cut to two items, long text cut short. The result's content holds the answer as JSON text; parsed, it reads:
{
"type": "comparison",
"entities": [
{
"ticker": "NVDA",
"name": "NVIDIA CORP",
"cik": "0001045810"
},
{
"ticker": "AMD",
"name": "ADVANCED MICRO DEVICES INC",
"cik": "0000002488"
}
],
"confidence": "estimated",
"source": {
"name": "OptimistFi — each company's valuation + investment thesis, side by side",
"url": "https://optimistfi.com/stocks",
"license": "computed"
},
"data": {
"side_by_side": {
"columns": [
"NVDA",
"AMD"
],
"periods": {
"NVDA": "Q2 2026",
"AMD": "Q2 2026"
},
"rows": [
{
"metric": "revenue (latest quarter)",
"values": {
"NVDA": 96221000000,
"AMD": 11536000000
},
"unit": "USD"
},
{
"metric": "revenue growth y/y (latest quarter)",
"values": {
"NVDA": 105.9,
"AMD": 50.1
},
"unit": "percent"
},
"… 7 more"
]
},
"contrast": "NVIDIA CORP grew revenue 106% y/y in its latest quarter against ADVANCED MICRO DEVICES INC's 50%. NVIDIA CORP trades at 46× earnings, ADVANCED MICRO DEVICES INC at 229×.",
"companies": [
{
"entity": {
"ticker": "NVDA",
"name": "NVIDIA CORP",
"cik": "0001045810"
},
"type": "answer",
"as_of": "2026-08-28T17:34:59Z",
"confidence": "estimated",
"source": {
"name": "OptimistFi — valuation over filed financials + the investment thesis",
"url": "https://optimistfi.com/stocks/NVDA",
"license": "computed"
},
"data": {
"valuation": [
{
"entity": {
"ticker": "NVDA",
"name": "NVIDIA CORP",
"cik": "0001045810"
},
"type": "valuation",
"direction": "backward",
"as_of": "2026-10-12",
"confidence": "confirmed",
"source": {
"name": "OptimistFi — ratios over the issuer's own filed financials",
"url": "https://optimistfi.com/stocks/NVDA",
"license": "computed"
},
"data": {
"pe_ratio": 46.02,
"price_to_sales": 25.59,
"price_to_book": 24.13,
"price_to_cash_flow": 53.79,
"ev_to_ebitda": 41.56,
"market_cap": 5525648000000,
"enterprise_value": 5536571000000,
"last_close": 229.28,
"last_close_date": "2026-10-09",
"fundamentals_period": "2026-01-25",
"shares_outstanding_date": "2026-08-21"
}
}
],
"thesis": {
"thesis": "NVIDIA converts an outsized and growing wave of AI datacenter demand into very high-margin profits because its accelerator hardware + software ecosystem are the default choice for training and inference at scale.",
"claims": [
{
"id": "ecosystem-lockin-drives-repeat-demand",
"claim": "NVIDIA's developer-facing software and ecosystem create switching costs that convert AI demand into repeat buys of its accelerators, sustaining data-center revenue growth.",
"why_it_matters": "If true, revenue growth will remain high and predictable as customers expand clusters around NVIDIA; if false, hyperscalers/custom silicon wins will cause demand to shift away and revenue growth will decelerate.",
"rests_on": "revenue",
"supporting_evidence": [
"Revenue grew from $26.974B (FY2023) to $215.938B (FY2026), showing sustained, repeatable demand expansion tied to AI workloads.",
"Item 1 Business describes NVIDIA as a pioneer in accelerated computing, implying a software+hardware ecosystem orientation that supports lock-in."
],
"challenging_evidence": [
"Hyperscalers develop and deploy custom accelerators at scale (e.g., in-house ASICs) and retool frameworks to favor those chips, reducing purchases of NVIDIA GPUs.",
"Competitors (AMD, Intel, or cloud-vendor silicon) achieve software/driver parity and win benchmark-based migrations for training clusters."
],
"metrics_and_events": [
"Segmented data-center revenue (watch for any disclosed declines or market-share loss)",
"Quarterly total revenue growth prints",
"… 2 more"
],
"status": "supported",
"confidence": "medium",
"sources": [
"Item 1 Business",
"https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=1045810&type=10-K"
],
"grounded": true
},
{
"id": "pricing-power-protects-gross-profit",
"claim": "NVIDIA's architecture and scale give it pricing power that keeps gross margin very high, protecting earnings power even as volume grows.",
"why_it_matters": "Sustained pricing power preserves high operating margins and cash conversion; loss of pricing power would compress margins and materially reduce intrinsic value.",
"rests_on": "gross_profit",
"supporting_evidence": [
"Gross profit expanded from $15.356B (FY2023) to $153.463B (FY2026), implying consistently high gross dollars as revenue scaled.",
"Operating income and net income grew faster than revenue, consistent with margin expansion and pricing power (operating_income: $3.297B → $130.387B, net_income: $4.368B → $120.067B)."
],
"challenging_evidence": [
"Competitors introduce lower-cost accelerators with comparable perf/W that force price competition (AMD MI-series, Intel/other datacenter silicon).",
"Large customers secure long-term supply agreements or volume discounts that materially reduce ASPs."
],
"metrics_and_events": [
"Gross profit (annual and quarterly) and any disclosed gross margin percentage",
"Announcements of competitor price cuts or subsidized cloud offerings",
"… 1 more"
],
"status": "supported",
"confidence": "medium",
"sources": [
"Item 1 Business",
"https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=1045810&type=10-K"
],
"grounded": true
},
"… 3 more"
],
"company_thesis": "NVIDIA's business captures AI-driven datacenter spend by selling purpose-built accelerators and a developer-facing software stack that create switching costs; product leadership, scale and ecosystem advantages let the company sustain premium pricing, convert sales into excepti…",
"security_overlay": "The stock currently prices in continued exceptional revenue growth and unusually high operating margins. For the stock to outperform, NVIDIA must keep converting hyperscaler and enterprise AI budgets into GPU and software sales at current share levels (no material loss to cust…",
"paragraph": "NVIDIA's story is that accelerated computing is the bottleneck for large-scale AI and NVIDIA supplies both the accelerators and the developer-facing software that make GPUs the practical default. The company has turned that position into rapidly rising revenue, massive gross p…",
"central_debate": "Will NVIDIA sustain its product and ecosystem advantage (and therefore pricing and margins) as hyperscalers, cloud providers and competitors invest in alternative/custom accelerators?",
"bull_case": "NVIDIA keeps its architectural and software lead, remains the default for AI training and inference, and thus sustains very high revenue growth and industry-leading margins. That combination drives exceptional free cash flow, which funds continuous innovation, capacity expansi…",
"bear_case": "Hyperscalers and large cloud providers migrate major training workloads to custom accelerators or competitor silicon at scale, or open-source frameworks favor non‑NVIDIA stacks. That would take away NVIDIA's high-margin volume, force price competition, and materially compress …",
"invalidation": "Widespread migration of hyperscaler/large-enterprise training deployments off NVIDIA GPUs to alternative/custom accelerators at scale (a driver-level loss of share and pricing power) that precedes declines in revenue and margins.",
"catalysts": [
"Quarterly revenue and operating margin prints (next several quarters) that reveal sustainment or erosion of margins",
"New datacenter GPU / accelerator product launches and initial performance/price benchmarks",
"… 2 more"
],
"segments": [
"Accelerated computing / datacenter AI (training & inference)",
"Graphics & gaming GPUs (consumer)",
"… 1 more"
],
"open_questions": [
"Detailed revenue mix by segment (data-center vs gaming vs software) and the percent of revenue from hyperscalers — not available in the provided fields.",
"Explicit gross margin and operating margin percentages per segment and how much margin is tied to data-center vs other businesses.",
"… 1 more"
],
"last_evaluated": "2026-08-28"
},
"helps_and_hurts": {
"breaks_the_case": "Widespread migration of hyperscaler/large-enterprise training deployments off NVIDIA GPUs to alternative/custom accelerators at scale (a driver-level loss of share and pricing power) that precedes declines in revenue and margins.",
"by_claim": [
{
"claim": "NVIDIA's developer-facing software and ecosystem create switching costs that convert AI demand into repeat buys of its accelerators, sustaining data-center revenue growth.",
"helps": [
"Revenue grew from $26.974B (FY2023) to $215.938B (FY2026), showing sustained, repeatable demand expansion tied to AI workloads.",
"Item 1 Business describes NVIDIA as a pioneer in accelerated computing, implying a software+hardware ecosystem orientation that supports lock-in."
],
"hurts": [
"Hyperscalers develop and deploy custom accelerators at scale (e.g., in-house ASICs) and retool frameworks to favor those chips, reducing purchases of NVIDIA GPUs.",
"Competitors (AMD, Intel, or cloud-vendor silicon) achieve software/driver parity and win benchmark-based migrations for training clusters."
]
},
{
"claim": "NVIDIA's architecture and scale give it pricing power that keeps gross margin very high, protecting earnings power even as volume grows.",
"helps": [
"Gross profit expanded from $15.356B (FY2023) to $153.463B (FY2026), implying consistently high gross dollars as revenue scaled.",
"Operating income and net income grew faster than revenue, consistent with margin expansion and pricing power (operating_income: $3.297B → $130.387B, net_income: $4.368B → $120.067B)."
],
"hurts": [
"Competitors introduce lower-cost accelerators with comparable perf/W that force price competition (AMD MI-series, Intel/other datacenter silicon).",
"Large customers secure long-term supply agreements or volume discounts that materially reduce ASPs."
]
},
"… 3 more"
],
"bull_case": "NVIDIA keeps its architectural and software lead, remains the default for AI training and inference, and thus sustains very high revenue growth and industry-leading margins. That combination drives exceptional free cash flow, which funds continuous innovation, capacity expansi…",
"bear_case": "Hyperscalers and large cloud providers migrate major training workloads to custom accelerators or competitor silicon at scale, or open-source frameworks favor non‑NVIDIA stacks. That would take away NVIDIA's high-margin volume, force price competition, and materially compress …"
},
"perps": {
"base": "NVDA",
"asOf": "2026-10-12T17:00:00Z",
"venues": 26,
"totals": {
"openInterestUsd": 180869754,
"openInterestChange24h": -0.06502,
"fundingRateHourlyOiWeighted": 0.000004607,
"fundingRateAnnualizedOiWeighted": 0.04036,
"priceLow": 226.21,
"priceHigh": 226.65
},
"units": {
"rates": "fractions (0.0001 = 0.01%)",
"funding": "what a long pays per hour (negative: shorts pay longs); fundingCumulative sums a venue's hourly rates over the window; predictedFunding is a venue's own estimate of a settlement still to come, where its reading publishes one",
"money": "US dollars",
"openInterestCap": "on Hyperliquid and its builder dexes: whether the market sits at its open-interest cap in the latest hourly reading (where it cannot grow its open interest), since when, and the cap in USD of one side's open interest where the dex publishes one"
},
"page": "https://optimistfi.com/perps/markets/nvda"
}
}
},
{
"entity": {
"ticker": "AMD",
"name": "ADVANCED MICRO DEVICES INC",
"cik": "0000002488"
},
"type": "answer",
"as_of": "2026-08-28T17:34:53Z",
"confidence": "estimated",
"source": {
"name": "OptimistFi — valuation over filed financials + the investment thesis",
"url": "https://optimistfi.com/stocks/AMD",
"license": "computed"
},
"data": {
"valuation": [
{
"entity": {
"ticker": "AMD",
"name": "ADVANCED MICRO DEVICES INC",
"cik": "0000002488"
},
"type": "valuation",
"direction": "backward",
"as_of": "2026-10-12",
"confidence": "confirmed",
"source": {
"name": "OptimistFi — ratios over the issuer's own filed financials",
"url": "https://optimistfi.com/stocks/AMD",
"license": "computed"
},
"data": {
"pe_ratio": 229,
"price_to_sales": 28.66,
"price_to_book": 14.77,
"price_to_cash_flow": 128.77,
"ev_to_ebitda": 235.08,
"market_cap": 992708033861,
"enterprise_value": 990848033861,
"last_close": 608.1,
"last_close_date": "2026-10-09",
"fundamentals_period": "2025-12-27",
"shares_outstanding_date": "2026-07-29"
}
}
],
"thesis": {
"thesis": "AMD creates durable shareholder value by converting share gains in CPUs and GPUs into higher-margin revenue and strong free cash flow, enabled by a capital-light fabless model and disciplined reinvestment.",
"claims": [
{
"id": "sustained_revenue_growth_from_product_share",
"claim": "AMD's revenue growth will remain above industry-average because continued CPU/GPU design wins and datacenter demand will keep increasing AMD's addressable share and mix.",
"why_it_matters": "If true, revenue growth funds R&D and scale advantages; if false, growth stalls and valuation re-rates.",
"rests_on": "revenue",
"supporting_evidence": [
"Revenue (annual) increased from 22,680,000,000 (2023) to 25,785,000,000 (2024) to 34,639,000,000 (2025), showing accelerating top-line growth."
],
"challenging_evidence": [
"Hyperscalers (e.g., cloud providers) further internalize CPU/GPU workloads with custom silicon, reducing TAM available to AMD.",
"A sustained competitive product lead by NVIDIA (for GPUs) or Intel (for CPUs) that reverses AMD's share gains."
],
"metrics_and_events": [
"revenue (next quarterly and FY prints)",
"company guidance in upcoming earnings calls",
"… 1 more"
],
"status": "mixed",
"confidence": "medium",
"sources": [
"https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=2488&type=10-K"
],
"grounded": true
},
{
"id": "margin_expansion_via_mix",
"claim": "Margin expansion will continue because a growing share of revenue comes from higher-margin datacenter products (driving operating income to grow faster than revenue).",
"why_it_matters": "Sustained margin expansion turns revenue gains into disproportionate EPS and free cash flow growth; if it fails, profit growth will lag revenue and returns fall.",
"rests_on": "operating_income",
"supporting_evidence": [
"Operating income (annual) rose from 401,000,000 (2023) to 1,900,000,000 (2024) to 3,694,000,000 (2025), implying margin improvement with scale."
],
"challenging_evidence": [
"Aggressive price competition from NVIDIA/Intel on datacenter/performance segments compresses pricing.",
"Foundry cost increases or component shortages raise COGS and reverse mix-driven margin gains."
],
"metrics_and_events": [
"operating_income (quarterly and annual)",
"gross_profit (quarterly)",
"… 1 more"
],
"status": "supported",
"confidence": "medium",
"sources": [
"https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=2488&type=10-K"
],
"grounded": true
},
"… 2 more"
],
"company_thesis": "AMD's competitive product designs (CPUs/GPUs) capture share in large, growing datacenter and client markets; that mix shift drives gross-profit and operating-income expansion while strong operating cash flow funds R&D and returns without dilutive financing, producing durable e…",
"security_overlay": "The stock already prices sustained above-industry revenue growth plus continuing operating-margin expansion and strong cash conversion. For the equity to outperform, AMD must keep winning share in datacenter GPU/CPU demand and translate that mix into further operating-income a…",
"paragraph": "AMD's story is that product-led share gains across CPUs and GPUs (particularly in datacenter demand) convert into higher gross profit, rapidly rising operating income and large operating cash flow. The financial evidence shows accelerating revenue and clear margin/cash inflect…",
"central_debate": "Can AMD sustain datacenter and high-margin GPU/CPU share gains (and thereby continued margin expansion) versus incumbents (NVIDIA, Intel) and hyperscalers building custom silicon?",
"bull_case": "AMD keeps winning CPU and GPU design wins, scales datacenter share, and converts that mix into continued operating-income and cash-flow expansion; its fabless model and cash generation let it fund R&D and shareholder returns, delivering sustained EPS compounding and a higher-q…",
"bear_case": "Large competitors (NVIDIA, Intel) or hyperscalers internalizing compute reduce AMD's addressable market; execution or supply-chain problems prevent new product delivery or raise costs, halting margin expansion and turning strong recent revenue growth into low-margin volume tha…",
"invalidation": "A durable reversal in margin and cash economics driven by loss of datacenter/share or sustained pricing pressure—specifically, AMD fails to expand (or reverts) operating margins such that operating-income no longer outpaces revenue growth and cash generation weakens.",
"catalysts": [
"Next quarterly earnings (revenue, operating_income, operating_cash_flow) and management guidance",
"Major product roadmap or architecture launches and public design wins (large cloud customers)",
"… 1 more"
],
"segments": [
"CPUs",
"GPUs",
"… 1 more"
],
"open_questions": [
"The filing Item 1 / MD&A text that would show explicit segment revenue mix and margins (we lack a segment-level breakdown in the provided data).",
"Details on major customer concentration and the proportion of revenue from hyperscalers vs. OEMs (not present in the supplied fields).",
"… 1 more"
],
"last_evaluated": "2026-08-28"
},
"helps_and_hurts": {
"breaks_the_case": "A durable reversal in margin and cash economics driven by loss of datacenter/share or sustained pricing pressure—specifically, AMD fails to expand (or reverts) operating margins such that operating-income no longer outpaces revenue growth and cash generation weakens.",
"by_claim": [
{
"claim": "AMD's revenue growth will remain above industry-average because continued CPU/GPU design wins and datacenter demand will keep increasing AMD's addressable share and mix.",
"helps": [
"Revenue (annual) increased from 22,680,000,000 (2023) to 25,785,000,000 (2024) to 34,639,000,000 (2025), showing accelerating top-line growth."
],
"hurts": [
"Hyperscalers (e.g., cloud providers) further internalize CPU/GPU workloads with custom silicon, reducing TAM available to AMD.",
"A sustained competitive product lead by NVIDIA (for GPUs) or Intel (for CPUs) that reverses AMD's share gains."
]
},
{
"claim": "Margin expansion will continue because a growing share of revenue comes from higher-margin datacenter products (driving operating income to grow faster than revenue).",
"helps": [
"Operating income (annual) rose from 401,000,000 (2023) to 1,900,000,000 (2024) to 3,694,000,000 (2025), implying margin improvement with scale."
],
"hurts": [
"Aggressive price competition from NVIDIA/Intel on datacenter/performance segments compresses pricing.",
"Foundry cost increases or component shortages raise COGS and reverse mix-driven margin gains."
]
},
"… 2 more"
],
"bull_case": "AMD keeps winning CPU and GPU design wins, scales datacenter share, and converts that mix into continued operating-income and cash-flow expansion; its fabless model and cash generation let it fund R&D and shareholder returns, delivering sustained EPS compounding and a higher-q…",
"bear_case": "Large competitors (NVIDIA, Intel) or hyperscalers internalizing compute reduce AMD's addressable market; execution or supply-chain problems prevent new product delivery or raise costs, halting margin expansion and turning strong recent revenue growth into low-margin volume tha…"
},
"perps": {
"base": "AMD",
"asOf": "2026-10-12T17:00:00Z",
"venues": 24,
"totals": {
"openInterestUsd": 48399089,
"openInterestChange24h": -0.003734,
"fundingRateHourlyOiWeighted": 0.000004713,
"fundingRateAnnualizedOiWeighted": 0.04129,
"priceLow": 591.14,
"priceHigh": 592.31
},
"units": {
"rates": "fractions (0.0001 = 0.01%)",
"funding": "what a long pays per hour (negative: shorts pay longs); fundingCumulative sums a venue's hourly rates over the window; predictedFunding is a venue's own estimate of a settlement still to come, where its reading publishes one",
"money": "US dollars",
"openInterestCap": "on Hyperliquid and its builder dexes: whether the market sits at its open-interest cap in the latest hourly reading (where it cannot grow its open interest), since when, and the cap in USD of one side's open interest where the dex publishes one"
},
"page": "https://optimistfi.com/perps/markets/amd"
}
}
}
]
}
}Fields are explained in Reading a response.
Errors
A call the server cannot run (a missing or invalid argument) comes back with
isError: true and the reason in words. A company or market the server cannot match comes back as a result naming what was not found. See Errors and limits.