Nvidia Versus AMD: Which AI Chip Stock Offers Better Value?

TLDR

• Nvidia reported $215.9 billion in revenue for fiscal 2026, marking a 65% year-over-year increase.
• Nvidia’s Data Center segment generated $193.7 billion over the full year.
• AMD posted $34.6 billion in full-year 2025 revenue, with Data Center sales rising 32% to $16.6 billion.
• Nvidia’s Data Center revenue is more than 11 times greater than AMD’s.
• AMD recorded $440 million in charges linked to U.S. export controls on its MI308 GPU.

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(SeaPRwire) –   Nvidia and AMD are both key players in the AI chip market, but their most recent financial results highlight two companies operating at significantly different scales.

Nvidia achieved $215.9 billion in revenue for fiscal 2026, a 65% increase compared to the previous year. Its gross margin reached 71.1%.

NVIDIA Corporation, NVDA

In its fourth quarter alone, Nvidia generated $68.1 billion in revenue, with Data Center sales totaling $62.3 billion.

For the entire year, Nvidia’s Data Center division delivered $193.7 billion in revenue. This segment has become the core of the company, largely driven by AI infrastructure investments from major cloud and technology providers.

Nvidia offers more than just chips; it provides a comprehensive stack that includes accelerators, networking hardware, systems, and a software platform. This integrated approach makes it difficult for customers to switch to competitors.

The primary risk for Nvidia lies in its high concentration of business within a single spending cycle from large data centers. Any slowdown in this spending could have a significant impact on its performance.

AMD’s Financial Performance

AMD reported $34.6 billion in total revenue for fiscal 2025. Its Data Center segment contributed $16.6 billion, up 32% from 2024. This growth was fueled by sales of EPYC server processors and Instinct AI accelerator products.

Advanced Micro Devices, Inc., AMD

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

While these are strong figures, Nvidia’s annual Data Center revenue remains more than 11 times larger than AMD’s. This disparity underscores how early-stage AMD is in expanding its AI infrastructure business.

AMD does not need to surpass Nvidia to experience growth. Even capturing a modest share of the server and accelerator markets could meaningfully boost its revenues.

However, AMD faces notable challenges. The company incurred approximately $440 million in charges during fiscal 2025 due to U.S. export restrictions on its MI308 data-center GPU.

This highlights both policy-related risks and the competitive difficulty of gaining market share from Nvidia.

Analyst Sentiment

Wall Street maintains a positive outlook on both stocks, though sentiment is stronger toward Nvidia. According to MarketBeat, 54 analysts cover Nvidia with a Buy consensus rating—comprising 48 buys, 4 strong buys, and 2 holds. The average 12-month price target stands at $275.25.

AMD is covered by 40 analysts, who collectively give it a Moderate Buy consensus—consisting of 1 strong buy, 31 buys, and 8 holds. Its average price target is $296.44.

The more favorable consensus on Nvidia reflects its dominant position in the market and superior margins.

Despite this, AMD’s higher average price target of $296.44 suggests analysts anticipate greater upside potential from its current stock level compared to Nvidia’s $275.25 target.