Advanced Micro Devices Vs Nvidia Which Is A Better Buy Ai Stock Analys

Bonisiwe Shabane

-Dec 31, 2025, 7:37 PM

advanced micro devices vs nvidia which is a better buy ai stock analys

Compare AMD and NVDA stocks to check their AI scores, past performance, fundamental, technical and sentiment indicators, alpha signals, key stock metrics, price, and more. This comparison, powered by AI, can help you understand which stock is a better buy right now. Advanced Micro Devices, Inc., recognized worldwide, operates as a prime semiconductor entity. It functions through ... View more NVIDIA Corporation is involved in the delivery of graphics, computational and network-oriented offerings across the...

View more Stock price evolution chart for AMD and NVDA. The past performance of a stock is an important stock analysis metric to compare before making an investment decision. The historical evolution of the AMD and NVDA AI Scores can be useful to analyze the correlation of the scores with the actual performance of the stocks. Comparing the AMD and NVDA AI Scores evolution can also help understand their market momentum. NVIDIA Corporation NVDA and Advanced Micro Devices, Inc.

AMD sit at the center of the artificial intelligence (AI) hardware revolution. Both are crucial players in the semiconductor space, competing directly in high-performance computing, graphics processing units (GPUs) and AI accelerators. While both companies are deeply committed to powering the next wave of AI computing, investors must be wondering which stock looks like the stronger bet right now. Let’s break down their fundamentals, growth drivers and valuations to find out. NVIDIA remains the backbone of the AI boom, with its GPUs powering everything from cloud data centers to self-driving vehicles. The company continues to dominate the AI infrastructure market, driven by explosive demand from cloud providers and enterprises.

In the second quarter of fiscal 2026, NVIDIA’s data center revenues surged 56% year over year to $41.1 billion, underlining the strength of its core business. The company’s new GPU architectures, Hopper 200 and Blackwell, are rapidly gaining adoption as customers race to expand AI capabilities. The upcoming Blackwell Ultra and Vera Rubin platforms could further cement NVIDIA’s leadership as the AI hardware race intensifies. NVIDIA also secured U.S. government approval in August 2025 to sell its H20 chips in China under a revenue-sharing deal, where it pays 15% of Chinese H20 sales to the U.S. government.

This move helps NVIDIA regain ground in China, a market that once contributed more than 20% of its revenues but has recently declined due to export restrictions. Regaining this access could stabilize a key revenue stream. NVIDIA Corporation NVDA and Advanced Micro Devices, Inc. AMD are at the center of the artificial intelligence (AI) hardware boom. Both companies make the graphics processing units (GPUs) and AI accelerators that train large language models, power cloud servers and drive modern computing. However, as U.S.

tariffs and new export restrictions weigh on tech sentiment, both stocks are down sharply this year. Year to date, NVDA and AMD stocks have plunged 22.2% and 27%, respectively. So, the question arises: Which chipmaker — NVDA or AMD — looks like the better AI play for investors amid the challenging macroeconomic backdrop? Let’s find out. NVIDIA is an undisputed leader in AI chips, data centers, gaming and autonomous vehicles. Its products are at the center of the ongoing AI revolution, driving demand from hyperscalers, enterprises and cutting-edge startups alike.

The data center end-market continues to be a powerhouse for NVIDIA. Revenues from this end-market surged 93% year over year to $35.58 billion in the fourth quarter of fiscal 2025. NVIDIA’s latestearnings callunderscored the company’s continued AI dominance. CEO Jensen Huang highlighted the increasing demand for next-generation AI models that require unprecedented computational power. The company’s Blackwell architecture, capable of delivering up to 25 times the token throughput of its predecessor, is expected to drive the next wave of AI adoption. One of the most captivating subplots in the world of tech investing is AMD versus Nvidia argument.

At first glance, the comparison seems quite unfair, as Nvidia is a $4 trillion juggernaut, and AMD is a far smaller $260 billion market cap. Nevertheless, being bigger does not always mean better. AMD is gradually establishing its own unique position, and is no longer the “second-best option” only. The latest Instinct chips from AMD are attracting the eyes of the leading AI players, which is not an easy achievement in a market where Nvidia is dominant. That said, while Nvidia is going to be the safe option for the next several years, AMD is becoming the stock that investors who are ahead of the growth curve would put money into. Nvidia undoubtedly leads over the rest of the pack in profitability, control, and customer confidence, it’s the company that powers most of the AI data centers in the world.

That is what makes many justify its valuation, even when it is at very high levels. However, when we dig deeper, we find that AMD has something that Nvidia doesn’t have, which is a relatively cheaper price and the potential to astonish the market. Their MI350 chips have already found their way into seven out of the ten biggest AI companies, and with the MI400, the next one in line, they could even become more powerful. In addition, the stock of AMD is still traded at a higher forward P/E multiple than that of Nvidia, which makes it “more expensive” relative to its profits. Therefore, it all comes down to personal preference and priority for investors.

Advanced Micro Devices Vs Nvidia Which Is A Better Buy Ai Stock Analys

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