Nvidia's data center revenue reached $89 billion in the second quarter of fiscal 2027 (ended July 26), growing 117% versus AMD's 107%. The article notes that AMD's data center division is more than 10 times smaller, yet Nvidia is growing faster, while AMD trades at a forward-earnings valuation about three times Nvidia's. The author expects the gap to narrow and says Nvidia will be the better stock to own over the next few years, given its broad exposure to the AI arms race.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
semiconductorsartificial intelligenceNvidiaAMDvaluation
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/26/2026 | 215.98 |
| Change that session | +2.38% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- 1 Red Flag That Keeps Me From Buying AMD Stock
The author says they are not planning to buy AMD stock because it looks too expensive, even though AMD's products are now more competitive alternatives to Nvidia's AI computing units. AMD trades at 130 times trailing 12-month earnings and 67 times forward earnings, well above the 25 to 35 times the author considers typical for a big tech company in the AI race. At 32 times next year's earnings, the article argues the stock already prices in most of the growth expected for 2027, which could lead to a sizable sell-off or slower gains as the stock grows into its valuation. The article compares this with Nvidia, which trades at 27 times trailing earnings.
- Price Prediction: The Gap With Nvidia Could Shape AMD’s Next Big Move
AMD shares are up 156.42% year to date, versus 18.43% for NVIDIA. Second-quarter revenue reached $11.54 billion, up 50.11%, with Data Center revenue up 107% to $6.72 billion and third-quarter revenue guidance of about $13 billion. The 24/7 Wall St. 12-month price target is $546.06, compared with the latest close of $539.43, and its model gives a hold rating. The optimistic scenario points to $689.35 and the bear case to $433.06. Points of concern include a trailing P/E of 201x, a 31% decline in gaming revenue, and a non-GAAP gross margin of 56% against NVIDIA's 75%.
- AMD vs. Nvidia. 1 Metric Proves Which Is the Best Stock.
The article argues Nvidia is the better stock to buy over AMD, based on revenue growth and valuation. In 2026, AMD shares have risen about 150% while Nvidia has returned 16%. AMD's data center revenue rose 107% to $6.7 billion in Q2 and total revenue grew 50% to $11.5 billion, while Nvidia's data center business grew 117% to $89 billion and total revenue rose 106% to $96.2 billion. If both companies hit next year's earnings projections, Nvidia would trade at 13 times earnings versus 33.5 times for AMD, which the author sees as a large premium. AMD reports Q3 results on Nov. 3.
- Here's What $10,000 Invested Equally in Nvidia, AMD, and Broadcom Could Be Worth by 2030
A $10,000 investment split equally among Nvidia, AMD and Broadcom could be worth about $29,000 by end-2030, provided AI infrastructure spending keeps growing. The author's projections value the 15.7 Nvidia shares at $14,475, based on a share price of about $922, a 19x forward P/E multiple, and EPS above the $28.79 consensus for fiscal 2031, which the author considers low. AMD, with 6.5 shares, is expected to benefit from AI inference demand and target a 50% share of a $220 billion server CPU market by 2030, which could take the position to $6,565. Broadcom, a leader in custom AI chips, could take its 10.3 shares to about $10,197 by late 2030.
- 3 AI Stocks To Watch In October 2026
Evercore has warned that tighter credit and higher Treasury yields could hit AI-related stocks, and the article argues that quality and real profitability matter more than hype. It highlights three companies from a profitable AI screen: NVIDIA, whose Compute & Networking segment generates about US$275.4 billion and Graphics about US$27.6 billion, with a market cap of about US$5,124.2 billion; and Advanced Micro Devices, with about US$22.2 billion from Data Center, US$11.8 billion from Client, roughly US$3.6 billion each from Gaming and Embedded, and a market cap of about US$829.2 billion. The article notes that an open-source or cheaper platform rivaling NVIDIA's CUDA could undermine its moat, and that the screen surfaced 36 more companies not covered in the article.
- Is AMD Even a Real Threat to Nvidia or Just a Pricing Lever?
AMD reported revenue of $11.54 billion, up 50.1%, with Data Center sales of $6.72 billion making up 58% of the total, while Nvidia's Data Center unit produced $89.02 billion, up 117%. AMD claims its Helios racks deliver up to 30% more tokens per dollar than competitors, and CFO Jean Hu warned that data center AI gross margin could come in slightly below the corporate average. Nvidia said it has supply for 70% of demand and guided fourth-quarter gross margin to 71% to 72% as memory costs rise. The author sees AMD as a credible second source for AI infrastructure, though AMD shares are up 182.75% year to date versus 22.82% for Nvidia and AMD trades at about 228 times earnings compared with about 46 times for Nvidia, and says Helios volumes will be the key test.
Related markets
Latest news
- One week out, prediction markets see Democrats as favored to sweep Congress
With the 2026 U.S. midterms one week from Tuesday, Kalshi traders put a 63% chance on Democrats winning control of both the House and Senate, odds that have been relatively stable since early October. Kalshi gives just under 10% to Republicans sweeping both chambers and 29% to Democrats taking the House while Republicans keep the Senate. On Polymarket, Democrats have a 65% chance to sweep both houses. The article notes prediction markets do not use traditional polling methods and are not substitutes for polls, which broadly show Democrats favored in the House popular vote and competitive in several Senate races in red states. House Speaker Mike Johnson, R-La., has questioned those findings, saying “the polling is inaccurate.”
- $116 Oil Just Made Saudi Aramco Bigger Than Meta
Brent crude near $116 a barrel (settling at $115.81) lifted Saudi Aramco's market value to $1.651 trillion, passing Meta Platforms at $1.606 trillion to rank No. 8 among the world's most valuable companies at the October 26, 2026 close, a gap of about $45 billion. Aramco shares rose 1.67% while Meta fell 1.88% to $630.56, the same day it announced a stock sale of up to $95 billion to fund AI data centers. Aramco reported second-quarter 2026 net income of $32.7 billion versus $22.67 billion a year earlier, and the author notes higher oil prices flow directly into its profits. The author argues Aramco's ranking depends on a price it does not control and could reverse quickly if a ceasefire, weaker demand or an OPEC output increase pushes Brent lower. The author also says US energy stocks, with a basket up 58.84% in 2026, appear fully priced with oil at this level.
- Cramer says something is missing in Tuesday's market rally and he's not eager to jump in
The S&P 500 rose Tuesday on optimism around chipmakers such as Broadcom, which worked with major banks on a $63 billion deal to finance AI chip purchases for Anthropic. Jim Cramer cautioned that the market remains sensitive to bond yields and oil prices, and said he wants a market driven by conviction rather than these 'weather' factors, seeing little conviction today. He urged patience, waiting for many reasons to buy even though lower oil might prompt some to look for opportunities. On Meta, its secondary offering was upsized to $25 billion from $22.5 billion, but its plan to sell $60 billion of stock at market prices starting next year could weigh on shares. Boeing fell nearly 10% after third-quarter results showed a bigger per-share loss than expected and reset cash-flow expectations, and Cramer called it a 'clearing event' as Wall Street estimates may need to come down.
- Lula’s election win leaves Brazil facing a fiscal tightrope
Lula’s surprise re-election as Brazil's president sent the benchmark index down 13.9% on Monday, its sharpest daily drop since the COVID-19 pandemic began, and the real fell nearly 8% against the U.S. dollar, the most since 1999. The 10-year government bond yield rose 2.46 percentage points to its highest level in over a decade, erasing a rally that followed Flávio Bolsonaro's first-round win. Lula must balance expensive promises to his grassroots base, such as minimum-wage increases above inflation and a 40-hour week without pay cuts, against investor concerns over debt in a slowing economy with high inflation and rates. The Treasury canceled two planned bond auctions this week over demand concerns and soaring yields. TS Lombard expects market-calming measures, while AJ Bell says the bond yield may rise first, making Brazilian equities relatively less attractive in the short term.
- Used & Refurbished Data Center GPU Market Size, Share, Trends, and Industry Analysis - Global Forecast to 2036 | AI Inference and Fleet Refreshes Drive 18% CAGR to USD 21.54 Billion
Used and refurbished data center GPUs are valued at USD 3.15 billion in 2025 and estimated at USD 4.11 billion in 2026, with revenue projected to reach USD 21.54 billion by 2036 at an 18.0% CAGR. Growth is driven by fast AI infrastructure replacement, expanding inference workloads, and limited supply of new GPUs and high-bandwidth memory. GPU-dense AI servers can be refreshed within 10 to 18 months, versus four to six years for conventional enterprise equipment. The report also flags risks including sharp price drops after new architecture launches, uncertain residual values, export controls on resale, and inconsistent condition grading. It covers five regions and 23 countries and sub-regions.
- Microsoft to report Q1 earnings with Wall Street looking for further Azure growth
Microsoft will report fiscal first-quarter earnings after the bell on Wednesday, following an offer of buyouts to more than 60,000 eligible employees. Wall Street expects earnings per share of $4.27 on revenue of $90.6 billion, up from $4.13 and $77.6 billion a year earlier, according to Bloomberg consensus. This is the first report under Microsoft's new two-segment structure: Agents and Infra, expected to grow 22.5% to $75.6 billion (with Azure at $32.2 billion and Microsoft 365 at $27.4 billion), and Devices and Consumer, projected to fall 6% to $15 billion. Capital expenditures including leases are expected to exceed $45.9 billion, versus $19.3 billion a year earlier, while remaining performance obligations are forecast at $705.6 billion, up 77% from $389 billion. The stock has climbed about 35% since July, following its Q4 earnings report.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.