Key Points
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Nvidia reported a staggering 85% year-over-year revenue increase, totaling $81.6 billion in its fiscal Q1 2027, driven mainly by a 92% surge in data center revenue, which reached $75.2 billion.
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As of now, Nvidia’s stock trades around $199, approximately 16% below its 52-week high, while AMD is at $520, just 8% shy of its high.
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Nvidia’s non-GAAP gross margin stands at 75%, significantly higher than AMD’s 55%, with Nvidia trading at about 31 times earnings compared to AMD’s 170.
The semiconductor industry faced a sell-off triggered by underwhelming AI chip forecasts from Broadcom, leading to a collective loss of over $1 trillion in stock value in early June. This turmoil affected leading companies like Nvidia and AMD, with both experiencing stock pullbacks, yet Nvidia continues to outpace AMD in growth metrics and profitability.
Nvidia’s forecast for Q2 indicates a potential revenue increase to about $91 billion, up 95% year-over-year, despite challenges in the market. Conversely, AMD reported a 38% revenue rise to $10.3 billion, with indications of continuing growth in its data center segment but struggling to match Nvidia’s sheer scale and margins.
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