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Nvidia Vs Amd Which Stock Should You Buy Today

Bonisiwe Shabane
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nvidia vs amd which stock should you buy today

Even with new export controls cutting off a vital market in China, demand for advanced chips used to power artificial intelligence (AI) infrastructure remains high. While there is a growing market for custom AI chips, the most commonly used chips for running AI workloads are graphics processing units (GPUs). This name stems from the fact that these chips were originally designed to speed up graphics rendering in video games. Due to their powerful processing speeds, GPUs are now used for a variety of high-power computing tasks, such as training large language models (LLMs) and running AI inference. The GPU market is basically a duopoly at this point, headed by Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD). The question many investors ask, though, is: Which stock is the better buy?

The unquestioned leader in the GPU space is Nvidia, which commands an over 80% market share. Not only is Nvidia larger than AMD, but it's also been growing its data center revenue more quickly. Last quarter, Nvidia grew its data center revenue by 73% to $39.1 billion, while AMD's data center revenue jumped 57% to $3.7 billion. Nvidia's advantage comes from its software platform, CUDA. It launched the free software platform all the way back in 2006 as a way to let developers program its GPUs for different tasks in an effort to expand beyond the video game market. The company pushed the use of the software to universities and research labs, which made it the software program upon which developers were taught to program GPUs.

While AMD made some half-hearted efforts with software, it didn't launch a true CUDA competitor until around 10 years later with ROCm. By that time, CUDA had already become the default software used to program GPUs, and ROCm was still behind with less hardware support, limited documentation, and more difficulty to install and use. Meanwhile, Nvidia has since expanded upon its software lead through a collection of AI-specific libraries and tools built on top of CUDA, called CUDA X, which helps bolster the performance of its chips for... If you’re considering which tech stock to buy today, you’re probably torn between Nvidia (NVDA) and AMD (AMD), two giants in the semiconductor world. Both are at the forefront of AI chip technology, but each has its own strengths and unique opportunities. Here’s a closer look at both companies to help you decide which one might be the better investment for your portfolio.

Nvidia has long been the leader in the GPU market, particularly in the AI and data center space. With a market share of around 90%, Nvidia’s dominance is hard to ignore. Their GPUs power everything from gaming rigs to high-end AI applications, making Nvidia a top pick for investors betting on the future of artificial intelligence. Financial Performance: Nvidia recently hit a major milestone, surpassing a $4 trillion market cap, solidifying its position as a major player in tech. Analyst Sentiment: Analysts are bullish on Nvidia, with Morgan Stanley recently raising its price target for the stock from $170 to $200, citing long-term growth driven by strong demand for AI hardware and data... Future Prospects: Nvidia’s upcoming Blackwell chip launch is generating a lot of excitement, expected to drive revenue growth in the second half of 2025.

With AI applications set to grow, Nvidia is positioned for sustained success. NVIDIA Corporation (NVDA Quick QuoteNVDA - Free Report) and Advanced Micro Devices, Inc. (AMD Quick QuoteAMD - Free Report) 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. 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. English Markets Specialist at Investing.com (SEO) BA (Hons) Business (1st) University of Coventry, England Financial Markets Copyeditor - Investing.com

Rachael has a Bachelor’s degree in mass media from Wilson College, Mumbai and a Master’s degree in English from Pune University. Investing in technology stocks requires understanding not just current performance metrics but the fundamental strengths, market positioning, and long term potential of companies. When considering semiconductor giants like Nvidia and AMD, investors face a choice between two formidable competitors that dominate different segments of the chip market. But how do these companies truly compare as investment opportunities? 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. 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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