The article's price model projects that a $10,000 stake in NVIDIA could reach about $18,056 in its base case (an 80.56% total return), while the same amount in AMD could reach about $11,989 (19.89%), with the five-year target running to October 2031. Reference prices are $546.66 for AMD and $215.69 for NVIDIA; NVIDIA trades at about 16x forward earnings, versus about 43x for AMD after a 155.26% year-to-date rally (NVIDIA: 15.92%). NVIDIA's fiscal second-quarter revenue reached $96.22B, up 105.8%, and AMD's reached $11.54B, up 50.1%, while the article says AMD's bull case depends on its steeper growth curve. Risks cited include high volatility (betas of 2.454 for AMD and 2.216 for NVIDIA), China and export controls, margin pressure and execution risk. The article stresses that these projections are for research purposes and actual results could differ substantially.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AMDNvidiasemiconductorsvaluation
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 10/28/2026 | 215.39 |
| Change that session | -1.17% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- AMD and Nvidia Split the AI Chip Market. 1 Stock Is Far Cheaper Today.
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.
- 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%.
- 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.
- 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.
Related markets
Latest news
- Prediction: This Magnificent ETF Will Crush the S&P 500 Over the Next 10 Years
Some leading investment strategists see a sluggish period ahead for the S&P 500, citing higher-for-longer interest rates and overvalued large caps, with a 10-year CAPE ratio above 40, the highest since the dot-com boom. The author argues the iShares Global Equity Factor ETF (GLOF) could beat the S&P 500 over the next decade: it is a global fund with 61% in U.S. stocks and 7% in Japan, holding stocks with the highest scores on momentum, quality, value, low volatility and size. The fund holds 684 stocks, with Apple, Nvidia and Microsoft as its largest positions. Over the past 10 years its annualized total return was 12% versus 15.4% for the S&P 500, but over the past one and three years it has outperformed: 15.8% vs 13.5%, and 24.1% vs 23.7%.
- Micron Is Up 225% This Year and Still Trades at 5 Times Earnings. Is It Too Late?
Micron is up 221.96% year to date and trades at about 5x forward earnings, while 24/7 Wall St.'s model carries a Buy rating with a $987.56 price target against an $877.55 reference price. Fiscal Q4 revenue reached $54.23B, beating the $50.97B estimate and up 379.27% year over year, and non-GAAP EPS of $33.42 topped the $31.35 estimate; gross margin widened to 87% from 45.7%. Management guided fiscal Q1 2027 revenue to $61.5B ±$1.5B and EPS to $38.15 ±$1.00. The bull case reaches $1,348.03 and the bear case $743.23, the latter citing memory's cyclicality and $30.71B of FY26 capex. Micron has committed more than 75% of fiscal 2027 shipments, yet the stock remains 27% below its all-time high.
- 4M Bitcoin Bought Above $85K Could Cap Recovery: Glassnode
Glassnode says about 4 million BTC held by long-term holders were bought between $85,000 and $118,000, mostly in 2025, while Bitcoin trades near $81,400. The average price U.S. spot Bitcoin ETFs paid is $81,500 according to Glassnode, leaving ETF holders near break-even. Analysts say the $84,000–$85,000 band has turned prices back several times, and a rally toward that level could prompt long-term holders to sell to break even. The Fed held rates at 3.75% to 4.00% in a 10-2 vote, while the 10-year Treasury yield sat just under 5%. ETF inflows picked up to about $424 million from Monday to Wednesday, but Tim Sun of HashKey argues the core issue is insufficient new buying rather than panic selling.
- Pimco Cut AI Debt Stakes by Half and Skirted Losses
According to Bloomberg, Pimco has cut its holdings by about 50% in two AI data center financings: roughly $18 billion of Meta-related debt and the $10 billion Oracle Michigan campus deal. It sold about $3 billion of Meta's Beignet bonds while they traded above par, whereas Oracle's Michigan notes, issued at 98.7 cents, have slid to around 88 cents. Pimco still remains one of the largest holders of both financings. The firm has also passed on several major deals and has warned about lax underwriting in private credit, a market now above $1.8 trillion. The article suggests tougher pricing on data center loans could raise developers' borrowing costs.
- The AI Buyback Wave: Rule Breaker Signal or Noise?
SK Hynix said it will buy back about $22 billion of its stock this year, in addition to an earlier program, after its shares fell about 24% in the month before it reported a sixth straight quarter of record sales and profits. Nvidia announced a new $150 billion buyback that brings its total authorization to $235 billion, and Micron disclosed that its board authorized up to $35.16 billion in repurchases. The article notes that an authorization is only a ceiling and does not commit a company to buying, and that buybacks offsetting stock paid to employees may leave the share count little changed. It argues that whether these buybacks signal management confidence depends on actual purchases and on cash flow from still-growing businesses, since memory chip cash piles tend to be largest near cyclical peaks.
- Sudden Escalation: Kremlin Responds Within Minutes to Zelensky's Proposal - 10 Countries Discuss Nuclear Strike
Russia's Defense Ministry said its forces took the village of Barilovka in Sumy province, advancing about 5 km into Ukrainian defenses in a single day, according to the “Two Majors” military channel. Zelensky said he is willing to discuss territorial concessions only in direct talks with Putin, and the Kremlin replied that a meeting is possible in theory but requires serious diplomatic preparation first. Trump said a high-level Russia-Ukraine meeting could take place soon, and The Atlantic reported he wants it in Miami during the G20 summit expected on December 14–15. Putin said that if Zelensky wants a direct meeting, he could travel to Moscow and would be guaranteed safety. Presidential aide Yuri Ushakov said the first round with Ukraine and the U.S. will be technical, with results expected at the earliest after a third meeting.
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.