Nvidia or AMD: Which AI Chip Stock Will Lead in 2026?

Key Points

• Advanced Micro Devices (AMD) stock has surged by 114% in 2026, outperforming Nvidia, which has increased by only 18% during the same period.

• Nvidia reports a fiscal 2026 revenue of $215.9 billion, up 65%, while AMD’s revenue rose 38% year-over-year to $10.25 billion in Q1 2026, with projections of a 76% increase in earnings.

• The global semiconductor industry is expected to grow by 64% in 2026, reaching $1.32 trillion, driven by demand for AI processors and networking components.

In the semiconductor sector, AMD’s strong growth prospects are bolstered by contracts with OpenAI and Meta Platforms to supply chips for AI data centers. These partnerships could add approximately $200 billion to AMD’s revenue once deployed in the second half of 2026. In contrast, Nvidia controls 81% of the AI chip market but faces a slowdown in earnings growth, expected to be 75% in 2026, tapering to 35% in 2027.

The PHLX Semiconductor Sector index has jumped 70% in 2026, reflective of rising interest and market demand fueled by artificial intelligence. Market research firm Gartner projects monumental growth in the industry, emphasizing the significance of AI technologies in driving revenue for companies like AMD and Nvidia.