**Nvidia Outperforms AMD in AI Growth**
Nvidia (NASDAQ: NVDA) has seen an impressive stock increase of nearly 1,110% since 2023, significantly outpacing Advanced Micro Devices (NASDAQ: AMD), which grew by 209% during the same period. However, from 2025 onward, AMD has made strides, rising 65% compared to Nvidia’s 30% increase. Still, Nvidia’s data center revenue growth remains superior, expected to increase around 70% year over year for Q4, while AMD’s data center revenue rose 39% year over year in its Q4.
**Market Valuation Discrepancies**
Despite AMD’s recent improvements, it trades at 30 times forward earnings, making it more expensive relative to Nvidia, which trades at 23 times forward earnings. This price discrepancy raises questions regarding the rationale for investing in AMD over Nvidia, particularly given Nvidia’s stronger growth metrics. Analysts suggest Nvidia is the preferred investment choice moving into 2026, based on its performance and market position.
