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NVIDIA vs. AMD After Earnings: Which AI Stock Should You Buy Now?
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Key Takeaways
NVIDIA's Data Center revenues jumped 117%, while total sales rose 106% in fiscal Q2 2027.
AMD's Data Center sales doubled, with Q3 revenues projected to grow 41% year over year.
NVIDIA's 63.7% net margin and 24.26 forward P/E compare with AMD's 15.6% and 69.59.
NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) have both gained immensely from soaring demand for artificial intelligence (AI) infrastructure and recently posted strong quarterly results. However, NVIDIA remains the market leader, while AMD continues to gain ground. So, which AI stock offers the better investment opportunity right now? Let’s see in detail –
NVIDIA’s AI Growth Surges as Data Center Demand Rises
NVIDIA’s Data Center business has remained the primary growth engine. Data Center revenues were $89 billion in the fiscal second quarter of 2027, up 117% year over year and 18% quarter over quarter, according to the company’s Aug. 26 press release. Overall, NVIDIA generated $96.2 billion in revenues, up 106% year over year and 18% sequentially.
Alongside rapid revenue growth, NVIDIA exhibited strong profitability. During the quarter, NVIDIA’s GAAP and non-GAAP gross margins both came in at 75% compared with roughly 72.5% a year ago. The company is also translating rapid revenue growth into even faster earnings growth, supported by continued gains in operating income.
NVIDIA now projects revenues of around $108 billion, plus or minus 2%, for the fiscal third quarter of 2027, up 12% sequentially from the midpoint. Thus, NVIDIA’s growth trajectory remains robust, while its cutting-edge Vera Rubin platform is in full production, indicating that the company is well-poised to gain from the next phase of AI infrastructure spending.
AMD’s Strong Data Center Growth Bolsters Its AI Ambitions
The Data Center segment was the primary driver of AMD’s revenue growth, with sales doubling from the same period a year ago in the second quarter of 2026, according to the company’s Aug. 4 press release. Total revenues reached $11.5 billion, up 50% year over year and 13% from the previous quarter.
Strong demand for AMD’s EPYC server processors boosted revenue growth. At the same time, the company’s Helios platform has entered its initial ramp-up phase, while its Instinct accelerators continue to scale rapidly. Consequently, AMD projects third-quarter 2026 revenues to reach $13 billion, plus or minus $300 million. At the midpoint, this would represent 41% year-over-year growth and a 13% sequential increase.
AMD also expects Data Center revenues to improve further in the latter half of 2026, and profitability is projected to improve steadily. The company projects a 56% non-GAAP gross margin in the third quarter, indicating continued progress in margin expansion.
NVIDIA vs. AMD: Why NVDA Is the Stronger AI Stock to Buy Now
The rollout of NVIDIA’s advanced Vera Rubin platform, strong margins, and sheer dominance in AI infrastructure, driven largely by Data Center growth, are expected to support a positive movement in its shares. AMD, meanwhile, is closing the gap through strong Data Center growth, expanding AI accelerator sales, and improving profitability.
Despite AMD’s growing momentum with its EPYC server processors and Instinct accelerators, NVIDIA’s full-stack platform gives the company a competitive edge as AI infrastructure spending increases. With a larger AI infrastructure footprint, NVIDIA remains the market leader.
Moreover, NVIDIA’s net profit margin of 63.7% versus AMD’s 15.6% highlights NVIDIA’s greater efficiency in converting revenues into bottom-line earnings. Therefore, NVIDIA remains the stronger buy, backed by superior profitability, AI infrastructure leadership and full-stack platform advantage.
Image Source: Zacks Investment Research
Additionally, NVIDIA appears more attractively valued than AMD. By price-to-earnings ratio, NVDA trades at 24.26 forward earnings compared with AMD’s 69.59 forward earnings multiple.
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NVIDIA vs. AMD After Earnings: Which AI Stock Should You Buy Now?
Key Takeaways
NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) have both gained immensely from soaring demand for artificial intelligence (AI) infrastructure and recently posted strong quarterly results. However, NVIDIA remains the market leader, while AMD continues to gain ground. So, which AI stock offers the better investment opportunity right now? Let’s see in detail –
NVIDIA’s AI Growth Surges as Data Center Demand Rises
NVIDIA’s Data Center business has remained the primary growth engine. Data Center revenues were $89 billion in the fiscal second quarter of 2027, up 117% year over year and 18% quarter over quarter, according to the company’s Aug. 26 press release. Overall, NVIDIA generated $96.2 billion in revenues, up 106% year over year and 18% sequentially.
Alongside rapid revenue growth, NVIDIA exhibited strong profitability. During the quarter, NVIDIA’s GAAP and non-GAAP gross margins both came in at 75% compared with roughly 72.5% a year ago. The company is also translating rapid revenue growth into even faster earnings growth, supported by continued gains in operating income.
NVIDIA now projects revenues of around $108 billion, plus or minus 2%, for the fiscal third quarter of 2027, up 12% sequentially from the midpoint. Thus, NVIDIA’s growth trajectory remains robust, while its cutting-edge Vera Rubin platform is in full production, indicating that the company is well-poised to gain from the next phase of AI infrastructure spending.
AMD’s Strong Data Center Growth Bolsters Its AI Ambitions
The Data Center segment was the primary driver of AMD’s revenue growth, with sales doubling from the same period a year ago in the second quarter of 2026, according to the company’s Aug. 4 press release. Total revenues reached $11.5 billion, up 50% year over year and 13% from the previous quarter.
Strong demand for AMD’s EPYC server processors boosted revenue growth. At the same time, the company’s Helios platform has entered its initial ramp-up phase, while its Instinct accelerators continue to scale rapidly. Consequently, AMD projects third-quarter 2026 revenues to reach $13 billion, plus or minus $300 million. At the midpoint, this would represent 41% year-over-year growth and a 13% sequential increase.
AMD also expects Data Center revenues to improve further in the latter half of 2026, and profitability is projected to improve steadily. The company projects a 56% non-GAAP gross margin in the third quarter, indicating continued progress in margin expansion.
NVIDIA vs. AMD: Why NVDA Is the Stronger AI Stock to Buy Now
The rollout of NVIDIA’s advanced Vera Rubin platform, strong margins, and sheer dominance in AI infrastructure, driven largely by Data Center growth, are expected to support a positive movement in its shares. AMD, meanwhile, is closing the gap through strong Data Center growth, expanding AI accelerator sales, and improving profitability.
Despite AMD’s growing momentum with its EPYC server processors and Instinct accelerators, NVIDIA’s full-stack platform gives the company a competitive edge as AI infrastructure spending increases. With a larger AI infrastructure footprint, NVIDIA remains the market leader.
Moreover, NVIDIA’s net profit margin of 63.7% versus AMD’s 15.6% highlights NVIDIA’s greater efficiency in converting revenues into bottom-line earnings. Therefore, NVIDIA remains the stronger buy, backed by superior profitability, AI infrastructure leadership and full-stack platform advantage.
Image Source: Zacks Investment Research
Additionally, NVIDIA appears more attractively valued than AMD. By price-to-earnings ratio, NVDA trades at 24.26 forward earnings compared with AMD’s 69.59 forward earnings multiple.
Image Source: Zacks Investment Research
NVIDIA currently has a Zacks Rank #1 (Strong Buy), while AMD has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 stocks here.