Free PDF Brief

Nvidia Is a Three-Cent Company: What a $4.9 Trillion Price Is Really Asking You to Believe.

Download the full PDF summary in one click.

•

Nvidia vs AMD Stock 2026: Before You Chase the Rally

|

NVIDIA vs AMD Stock 2026

Independent research for informational purposes only. Not investment advice.

All calculations presented in this article are based on data sourced from SEC filings and the company’s official website.

Key Takeaways

Nvidia vs AMD at a Glance

Table 1: Nvidia vs AMD at a glance (latest quarter)

MetricNvidia (Q2 FY2027)AMD (Q2 2026)
Quarter ended26 July 202627 June 2026
Revenue$96.2B (+106% YoY)$11.5B (+50% YoY)
Data Center revenue$89.0B (+117%)$6.7B (+107%)
GAAP gross margin75.0%54%
GAAP net income$59.7B$2.3B
GAAP diluted EPS$2.46$1.38
Free cash flow (first six months)$69.9B$4.1B
Next-quarter revenue guidance$108.0B ±2%About $13.0B ±$0.3B

Nvidia vs AMD Stock Performance in 2026

Table 2: Price comparison, 2026

MeasureNvidiaAMD
Recorded price on 31 Dec 2025$186.50$214.16
Model price on 30 Sep 2026$230.95$602.79
Year-to-date price change, excluding dividends23.8%181.5%
Modeled market value using fiscal-year share counts$5.57T$0.983T
Nvidia vs AMD stock price performance in 2026: AMD up 181.5% and Nvidia up 23.8% since 31 Dec 2025

Why AMD Has a Higher Share Price Than Nvidia

AMD Growth and AI Customer Commitments

Data Center Growth

AI Customer Commitments

CustomerWhat was announcedAnnounced timingSource
OpenAIAgreement for 6 GW across multiple GPU generationsFirst 1 GW beginning in the second half of 2026AMD 8-K, 6 Oct 2025
OracleInitial deployment of 50,000 MI450 Series GPUsStart in calendar Q3 2026; expansion in 2027 and beyondOracle announcement, 14 Oct 2025
AnthropicUp to 2 GW of MI450 Series GPUs in Helios racksFirst 1 GW in the first half of 2027AMD release, 22 Jul 2026
MicrosoftExpanded deployment of Helios racks on AzureNot datedAMD Q2 2026 release

Nvidia vs AMD Revenue Margins and Returns Compared

Revenue and Margins

ItemNvidiaAMD
Cash and marketable debt securities or short-term investments$56.6B$13.1B
Equity investments, including long-term public equities$98.90BNot tabulated here
Total debt$33.4B$3.2B
Dividend$0.25 per share per quarterNone
Nvidia vs AMD quarterly revenue: Nvidia $96.2B total and $89.0B Data Center, AMD $11.5B total and $6.7B Data Center

Return on Net Operating Assets

MeasureNvidiaAMD
Sustainable after-tax margin, latest quarter55.6%13.9%
Asset turnover, latest quarter annualized2.430x0.825x
Sustainable RNOA, latest quarter annualized135.19%11.49%
Nvidia vs AMD return on net operating assets (RNOA): Nvidia 135.19% and AMD 11.49% latest-quarter annualized
AMD historical RNOA 2017-2025: annual operating return peaked at 77.1% in 2021 and fell to 5.5% by 2025 after the Xilinx acquisition

What Each Share Price Assumes

Measure and periodNvidiaAMD
Implied yearly growth in operating earnings, forever (trailing twelve months basis)7.1%9.5%
Growth premium (last-fiscal-year no-growth anchor)78.3%96.1%
Zero-growth operating-earnings yield (sustainable, trailing twelve months)3.0%0.5%
P/E, last four quarters28.9x159.8x
Nvidia vs AMD growth premium: AMD's share price carries a 96.1% growth premium versus Nvidia's 78.1% as of 28 Sep 2026

Can AMD Beat Nvidia in AI Three Scenarios

ScenarioWhat happens
BearAI spending or margins weaken. Both valuations face risk if profits and growth fall short. AMD’s larger growth premium shows greater reliance on growth, not a guaranteed larger fall.
BaseNvidia sustains stronger profitability. AMD improves its margins and asset turnover.
BullAMD’s deployments scale and its profitability improves. Nvidia also keeps growing. OpenAI warrant dilution is a separate risk for AMD holders.
If RNOA isAMD needs growth ofNvidia needs growth of
20%9.39%9.78%
30%8.77%9.56%
50%7.55%9.11%

Risks for Both Stocks

Nvidia Risks

AMD Risks

Final Verdict

Is AMD Worth More Than Nvidia

Using the 30 September 2026 quotes and fiscal-year model share counts, AMD’s market capitalization was approximately $0.983 trillion and Nvidia’s $5.57 trillion. A higher price per share does not imply a higher total company value; share count also matters.

Do Nvidia or AMD Pay a Dividend

Nvidia pays $0.25 per share each quarter, following the increase from $0.01 announced in May 2026. AMD does not pay a cash dividend.

About the Author

Usama Ali

Usama Ali is the founder of Financial Beings and an independent equity analyst active since 2020. His work is influenced by Benjamin Graham, Stephen Penman, Aswath Damodaran, Peter Lynch, and behavioral finance research from Daniel Kahneman, focusing on valuation and market expectations.

Disclaimer & Editorial Disclosure

The content published on Financial Beings is for informational and educational purposes only. It does not constitute financial, investment, legal, or other professional advice, and should not be construed as a recommendation or solicitation to buy, sell, or hold any security or financial instrument.

Financial Beings is an independent editorial publication and is not registered as an investment adviser with any regulatory authority, including the SEC, BaFin, or any other financial supervisory body. All analysis reflects the independent views of the author based on publicly available data, including SEC filings and official company websites.

All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. Market conditions, valuations, and company fundamentals may change materially after the date of publication.

Financial Beings does not accept sponsored content, paid stock promotions, or compensation from any company discussed in its research. The author holds no positions in the securities discussed in this article unless explicitly stated otherwise. Readers should conduct their own independent research and consult a qualified financial adviser before making any investment decision.

Independent Research No Sponsored Content Not Investment Advice Valuation Discipline

INDEPENDENT RESEARCH  ·  NO SPONSORED CONTENT

Our Mission

Financial Beings exists to give long-term investors the analytical clarity to act with conviction. Every piece of research we publish is independent, valuation-driven, and free from sponsor influence. We believe discipline, patience, and clear reasoning are the enduring edge in capital markets.

Research Areas

Explore Categories

Featured Research

Flagship Analysis

microsoft expected return analysis 2026-2030

Big Tech Valuation

Microsoft Expected Return Analysis 2026-2030

A strong anchor piece for understanding how Financial Beings frames growth, quality, and realistic long-term upside.

Evergreen Picks

Start With These

Three high-signal reads that show you our valuation style, expected return thinking, and sector depth at a glance.

Expected Return

Microsoft Expected Return Analysis 2026-2030

A strong first read for understanding how Financial Beings frames growth, valuation, and realistic upside.

Undervalued Healthcare Opportunity

UNH vs ELV Stock in 2026: Valuation, Growth, and Risk — Which Healthcare Giant Is the Smarter Buy?

A clear side-by-side comparison that makes the AI investment decision easier for you.

Sector Depth

Good Oil Stocks to Buy Now in 2026

This shows the brand can do disciplined cash-flow work outside the obvious AI and mega-cap names.

Reader Note

Independent Research

Financial Beings publishes valuation focused market analysis for readers who value discipline, patience, and clear reasoning.