Nvidia vs AMD

This page provides a comparison between NVIDIA Corporation and Advanced Micro Devices, Inc., examining their respective business models, financial performance, and broader market context to aid understanding. Educational content, not financial advice.

This page provides a comparison between NVIDIA Corporation and Advanced Micro Devices, Inc., examining their respective business models, financial performance, and broader market context to aid unders...

Comparison Snapshot

Key Financial Metrics

NVDA

Metric

AMD

$4.53T

Market Cap

$409.14B

29.93%

Potential Profit

6.76%

Buy

Analyst Rating

Buy

Why It's Moving

Nvidia surges on biotech pivot and China chip green light amid AI momentum.

Shocking $1B Eli Lilly collaboration taps AI into biotech drug discovery, expanding Nvidia's addressable market dramatically.
Green light for H200 chip exports to China revives sales prospects despite Huawei competition and past restrictions.
CES 2026 updates confirm Blackwell production ramp and Rubin Ultra chips for 2027, bolstering the AI chip roadmap.

Sentiment:

🐃Bullish

AMD Powers Up with Seven-Day Winning Streak as Wall Street Bets Big on AI Momentum Ahead of Earnings.

Wells Fargo reiterated Overweight rating with $345 target, eyeing 55% upside from $223.60 levels due to projected EPS over $20 by 2029 on AI growth.
Stock rallied from $231.92 to $249.80 in recent session with surging volume, signaling robust investor optimism and pivot buy signals since January 9.
Upcoming February 3 earnings loom large, with CEO Lisa Su's vision of 35%+ annual revenue growth underscoring AMD's traction in AI chips for clients like OpenAI and IBM.

Sentiment:

🐃Bullish

Nvidia surges on biotech pivot and China chip green light amid AI momentum.

Shocking $1B Eli Lilly collaboration taps AI into biotech drug discovery, expanding Nvidia's addressable market dramatically.
Green light for H200 chip exports to China revives sales prospects despite Huawei competition and past restrictions.
CES 2026 updates confirm Blackwell production ramp and Rubin Ultra chips for 2027, bolstering the AI chip roadmap.

Sentiment:

🐃Bullish

AMD Powers Up with Seven-Day Winning Streak as Wall Street Bets Big on AI Momentum Ahead of Earnings.

Wells Fargo reiterated Overweight rating with $345 target, eyeing 55% upside from $223.60 levels due to projected EPS over $20 by 2029 on AI growth.
Stock rallied from $231.92 to $249.80 in recent session with surging volume, signaling robust investor optimism and pivot buy signals since January 9.
Upcoming February 3 earnings loom large, with CEO Lisa Su's vision of 35%+ annual revenue growth underscoring AMD's traction in AI chips for clients like OpenAI and IBM.

Sentiment:

🐃Bullish

Investment Analysis

Nvidia

NVDA

Pros

EPS estimates for FY26 rose 4% recently, projecting 56% growth to $4.66 per share.
Dominant AI market position with superior long-term returns of 73.77% annually over 10 years.
Forward P/E of 25X undervalues strong margins and projected FY27 revenue near $330 billion.

Considerations

Stock underperformed AMD in 2025 with +40% gains versus AMD's +70%.
Elevated forward P/E of 40X remains premium despite recent discounts to historical peaks.
Huge $4.23 trillion market cap limits multibagger upside potential versus smaller rivals.

AMD

Pros

Outperformed Nvidia in 2025 with +70% stock gains amid AI ecosystem expansion.
Forward P/E of 35X offers slight discount to Nvidia's multiple with solid FY26 EPS growth of 58%.
Recent YTD return of 37.82% exceeds Nvidia's 29.22%, showing momentum in AI chips.

Considerations

Secondary position in AI lags Nvidia's dominance, reflected in Zacks Rank #3 Hold.
High forward P/E of 33X exceeds Nvidia's despite inferior margins and growth prospects.
Lower 10-year annualized return of 55.94% trails Nvidia's 73.77% significantly.

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