Nvidia vs AMD: Which AI Chip Stock is the Better Buy?

Nvidia vs AMD: Which AI Chip Stock is the Better Buy?

Set as Google Preferred SourceFollow on Google News

TLDR

  • Nvidia posted $215.9 billion in revenue for fiscal 2026, up 65% year over year
  • Nvidia’s Data Center segment alone generated $193.7 billion for the full year
  • AMD reported $34.6 billion in full-year 2025 revenue, with Data Center up 32% to $16.6 billion
  • Nvidia’s Data Center revenue is more than 11 times larger than AMD’s
  • AMD took $440 million in charges tied to U.S. export controls on its MI308 GPU

Nvidia and AMD are both major players in the AI chip market, but their latest earnings show two companies operating at very different scales.

Nvidia reported $215.9 billion in revenue for fiscal 2026. That was a 65% increase from the prior year. Its gross margin came in at 71.1%.


NVDA Stock Card
NVIDIA Corporation, NVDA

The company’s fourth quarter alone brought in $68.1 billion in revenue. Data Center revenue in that single quarter hit $62.3 billion.

For the full year, Nvidia’s Data Center business generated $193.7 billion. That segment is now the core of the company, driven almost entirely by AI infrastructure spending from large cloud and technology firms.

Hands holding a smartphone showing the NVIDIA logo on a bright screen.
Photo: UMA media / Pexels

Nvidia sells more than chips. It offers a full stack that includes accelerators, networking hardware, systems, and a software platform. That makes it harder for customers to switch to a competitor.

The main risk for Nvidia is concentration. So much of its business depends on a single spending cycle from large data centers. Any slowdown in that spending could hit results hard.


Zuna

AdvertisementDon't Outlive Your Benefits — Long-Term Care insurance with unlimited LTC funds for as long as you live. Call 1-800-317-0625

AMD’s Numbers

AMD reported full-year 2025 revenue of $34.6 billion. Its Data Center segment brought in $16.6 billion, up 32% from 2024. That growth came from its EPYC server processors and Instinct AI accelerator products.


AMD Stock Card
Advanced Micro Devices, Inc., AMD

AdvertisementDon't Outlive Your Benefits — Long-Term Care insurance with unlimited LTC funds for as long as you live. Call 1-800-317-0625

In the fourth quarter, AMD posted a 54% gross margin, $1.8 billion in operating income, and $1.5 billion in net income.

Those are solid numbers. But Nvidia’s annual Data Center revenue is still more than 11 times AMD’s. That gap shows how early AMD is in building out its AI infrastructure business.

AMD does not need to overtake Nvidia to grow. Even capturing a small share of the server and accelerator market can move its revenue in a meaningful way.

But AMD faces real headwinds. It recorded around $440 million in charges in fiscal 2025 related to U.S. export controls on its MI308 data-center GPU.

Close-up of a hand holding a smartphone showing the NVIDIA logo on screen with a blurred background.
Photo: UMA media / Pexels

That points to both policy risk and the competitive challenge of taking market share from Nvidia.

What Analysts Think

Wall Street is positive on both stocks, but more so on Nvidia. According to MarketBeat, 54 analysts cover Nvidia with a Buy consensus. That includes 48 buys, 4 strong buys, and 2 holds. The average 12-month price target is $275.25.

AdvertisementDon't Outlive Your Benefits — Long-Term Care insurance with unlimited LTC funds for as long as you live. Call 1-800-317-0625

AMD has coverage from 40 analysts with a Moderate Buy consensus. That breaks down as 1 strong buy, 31 buys, and 8 holds. Its average price target is $296.44.

The stronger consensus on Nvidia reflects its dominant market position and higher margins.

AMD’s average price target of $296.44 is currently higher than Nvidia’s $275.25. That suggests analysts see more price upside from AMD’s current level, even if business fundamentals favor Nvidia.

AdvertisementDon't Outlive Your Benefits — Long-Term Care insurance with unlimited LTC funds for as long as you live. Call 1-800-317-0625

🚨 Our MAY Stock Picks Are Live!

A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.

Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.

Use coupon code Special50 for your exclusive discount!


Read More

Join the conversation

Your email address will not be published. Be respectful — keep it constructive.

AdvertisementDon't Outlive Your Benefits — Long-Term Care insurance with unlimited LTC funds for as long as you live. Call 1-800-317-0625
AdvertisementDon't Outlive Your Benefits — Long-Term Care insurance with unlimited LTC funds for as long as you live. Call 1-800-317-0625