University of Kwazulu-Natal

Nvda Vs Amd Which Semiconductor Stock Is The Smarter Ai Play Nasdaq

Bonisiwe Shabane
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nvda vs amd which semiconductor stock is the smarter ai play nasdaq

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. Nvidia and AMD have become two of the hottest names in tech investing—especially in the booming artificial intelligence (AI) market. If you've been eyeing AI stocks for your portfolio, you're probably wondering: which of these semiconductor powerhouses is the better buy right now? While both companies play major roles in powering next-generation technology, they approach the AI battlefield with very different strategies.

Let’s break it all down—from their financials and product lines to their future outlook—to help you figure out which one truly deserves a spot in your portfolio. Nvidia and AMD are like rivals racing side by side on a tech highway, but their engines run differently. Nvidia has long positioned itself as the gold standard for high-performance GPUs used in deep learning, AI modeling, and massive data center workloads. Think of GPUs as the “brains” behind most of what AI can do—image recognition, voice processing, and training large language models like ChatGPT. AMD, meanwhile, is also making strides—though with a slightly different focus. While their GPUs are competitive, AMD is leveraging its chiplet architecture and CPU + GPU combo offerings to provide flexible, performance-efficient solutions for AI and data center environments.

Essentially, AMD is trying to give users a well-rounded digital toolkit rather than just betting everything on ultra-high-end GPUs. At the core of their competition is how they're enabling AI performance for large-scale users (think cloud providers like Amazon, Microsoft, and Google) and enterprise clients diving into machine learning and edge computing. That’s where the serious growth is happening—and both companies are racing for market control. Wholesale & Dealership - Warehouse automation solutions for wholesalers and dealerships, optimizing inventory management, order fulfillment, and operational efficiency to boost profitability and reduce errors. Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that...

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Western Union expands into digital assets with a new stable card and plans to issue its own stablecoin, focusing on emerging markets. For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data. NVIDIA Corporation (NVDA Quick QuoteNVDA - Free Report) and Advanced Micro Devices, Inc. (AMD Quick QuoteAMD - Free Report) 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 latest earnings call underscored 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.

If you have semiconductor stocks on your radar, there’s a good chance you’re struggling to choose between Nvidia and Advanced Micro Devices (AMD), the two titans in the constantly changing tech war. Although both firms are at the core of the AI hardware revolution, each has its own strengths, growth stories, and risk profiles. Picking between the two is just like selecting our most favorite Marvel superhero, where they’re both strong, awesome, and both can rescue your portfolio. If you’re looking to invest in stability or potential for the upside, to know the main difference is the key. In the AI arms race, Nvidia is now the unchallenged king. With GPUs behind everything from video games to trillion-parameter AI models, Nvidia is now inseparably linked with a modified and innovative computing system.

Nvidia has an estimated 90% of the data center GPU market share, and its chips are broadly accepted as the gold standard for inference and training AI. Its CUDA ecosystem and software support provide it with an advantage that reaches beyond hardware. It’s the platform of choice for developers and enterprise customers. Nvidia recently reached a $4 trillion market cap milestone, which is an indication of investor interest and strong fundamentals. Its data center business alone achieved triple-digit growth in the last few quarters, as hyperscalers such as Microsoft, Meta, and Google drive demands.

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