Artificial intelligence (AI) is transforming the semiconductor industry, with NVIDIA Corporation (NVDA) and Advanced Micro Devices, Inc. (AMD) at the forefront. In the first quarter of fiscal 2027, NVIDIA reported revenues of $81.6 billion—an 85% increase year-over-year—while AMD reported $10.3 billion in revenues in the first quarter of fiscal 2026, a 38% increase.
NVIDIA’s data center sales surged 92% to $75.2 billion, and non-GAAP earnings rose 140% to $1.87 per share. Conversely, AMD’s data center revenues reached $5.8 billion, up 57%, with non-GAAP earnings increasing 43% to $1.37 per share. Analysts predict that NVIDIA will experience an 80% revenue growth in fiscal 2027, while AMD is forecasted to see a revenue increase of 42.3% in fiscal 2026.
In terms of valuation, NVIDIA currently trades at a forward price-to-earnings multiple of 19.31, considerably lower than AMD’s 53.04. This suggests that despite AMD’s recent stock rally of 154.3% year-to-date, NVIDIA remains a more compelling long-term investment due to its stronger growth metrics and profitability.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
