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PBF Energy and Lennar have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 11, 2026 – Zacks Equity Research shares PBF Energy (PBF - Free Report) as the Bull of the Day and Lennar Corporation (LEN - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA Corp. (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) .
PBF Energy, a Zacks Rank #1 (Strong Buy), is having the kind of year that reminds investors why refining – for all its cyclicality – can produce extraordinary returns when the cycle turns.
The independent refiner has swung from losses to record profitability in the space of twelve months, and analysts have spent the summer racing to catch up to the numbers.
The stock has responded accordingly, climbing roughly 190% year to date against an 11% gain for the S&P 500 and touching record highs following its second-quarter report. That is the kind of relative strength, backed by accelerating fundamentals, that we look for.
A Leading Industry Group
PBF Energy is part of the Zacks Oil and Gas – Refining and Marketing industry group, a 15-stock cohort within the broader Zacks Oil-Energy sector. The group currently carries a Zacks Industry Rank of #8, placing it in the top 3% of nearly 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months:
Take note of the favorable characteristics for this group below. Stocks in this group are relatively undervalued and are expected to experience above-average earnings growth, signaling a powerful combination that should lead to higher prices in the future.
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
PBF Energy is one of the largest independent petroleum refiners in North America, operating six refineries across the East Coast, Mid-Continent, Gulf Coast and West Coast. Its system includes the Torrance, Martinez, Chalmette, Paulsboro, Delaware City and Toledo facilities, supported by a logistics network that moves crude in and products out. The company also holds a 50% interest in St. Bernard Renewables, a renewable diesel joint venture.
That geographic spread is the strategic point. Because PBF operates in every major U.S. refining region, it can capture advantageous crude differentials and product spreads wherever they open up — an unusually valuable trait when global trade flows are being rerouted. Management has spent the past two years focused on restoring full refining capability after the Martinez fire, improving asset reliability through its Refinery Business Improvement program, and strengthening the balance sheet.
Earnings Trends and Future Estimates
The second quarter was a blowout. PBF delivered adjusted earnings of $6.22 per share, reversing a year-ago loss of $1.03 and beating the Zacks Consensus Estimate of $4.05 by 53.6%. Revenues surged 56.2% year over year to $11.68 billion, topping consensus by roughly 37%.
The balance sheet transformation is equally striking. PBF reduced net debt by more than $1.4 billion during the quarter, cutting net debt to capitalization to 15%, and lowered its 2026 capital spending guidance to $825–$875 million by shifting the Chalmette and Toledo turnarounds into 2027 — a sensible decision that maximizes utilization while margins are elevated. The company declared a quarterly dividend of $0.275 per share.
The estimate revisions are what earn the Zacks Rank #1. Over the past 60 days, the consensus for the current quarter has surged 80.95%. The Zacks Consensus Estimate now stands at $6.84 per share — a change of more than 1,400% from the year-ago figure. PBF has topped consensus revenue estimates in each of the last four quarters and beaten on EPS in three of four.
Let’s Get Technical
PBF Energy has been one of the strongest performers in the entire energy complex. This is exactly the kind of stock we want to include in our portfolio — one that is trending well and receiving positive earnings estimate revisions.
Notice how shares reside above upward-sloping 50-day (blue line) and 200-day (red line) moving averages, the hallmark of a healthy bull trend, with the stock breaking to record territory on strong volume following the July earnings report.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, PBF has recently witnessed sharp upward revisions. As long as this trend remains intact (and PBF continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
Backed by a leading industry group and a powerful wave of upward estimate revisions, it’s not difficult to see why this refiner has captured investor attention. Currently, PBF sports the highly coveted Zacks Rank #1 (Strong Buy), placing it in the top 5% of Zacks-covered stocks on estimate revisions.
Management makes a credible case that the mid-cycle margin floor has risen structurally since product inventories are unlikely to normalize before well into 2027. With a deleveraged balance sheet, rising estimates and a top-8% industry behind it, PBF deserves a spot on your watchlist.
Lennar Corporationis one of the largest homebuilders in the United States, constructing and selling homes across a wide range of price points — from entry-level and first-time buyers to move-up and active-adult communities.
Beyond homebuilding, the company operates a Financial Services segment providing mortgage, title and closing services, a Multifamily business, along with a technology and strategic investment unit. Founded in 1954, Lennar has built more than 1.5 million homes.
Despite its storied history, Lennar is caught in the teeth of the worst housing affordability environment in a generation, and the numbers show it. The core problem is straightforward: mortgage rates track the long end of the Treasury curve, and long-term yields have backed up sharply. Every basis point of increase pushes another cohort of buyers out of the market.
Lennar’s response has been to protect volume through incentives and price concessions — a strategy that keeps the production machine running but steadily erodes profitability. Compounding the affordability squeeze is the mortgage lock-in effect. Millions of existing homeowners hold mortgages at rates far below anything available today, which keeps them in place and starves the resale market of inventory.
That dynamic once benefited builders, since buyers unable to find existing homes turned to new construction. But it works only while buyers can afford the payment at all — and at current rates, a growing share simply cannot. New orders grew just 1% year over year in the first quarter, a telling signal for a company of this scale.
The Zacks Rundown
Lennar has been a clear laggard. Shares recently traded near $78, roughly 44% below their 52-week high, and the sell side has been cutting targets — JPMorgan lowered its objective to $77 with an Underweight rating, while Keefe Bruyette maintains an Underperform rating. A Zacks Rank #5 (Strong Sell), LEN reflects sharply unfavorable earnings estimate revision trends.
Shares are part of the Zacks Building Products – Home Builders industry group, which currently ranks in the bottom 21% out of approximately 250 Zacks Ranked Industries. Stocks in the bottom half of Zacks Ranked Industries face a persistent headwind, and while individual names can outperform a weak group, the industry association tends to cap the size and durability of any rally.
With far better alternatives available in the current market environment, this stock should be avoided.
Cracks in the Foundation: Shrinking Revenue and Falling Estimates
The second quarter told the story plainly. Lennar delivered 20,519 homes and generated revenue of $7.9 billion — short of the roughly $8 billion consensus and down 5.2% year over year. Net margin sat at just 4.93%, with shares falling about 5% on the news.
Gross margin of 15.6% represented modest sequential improvement, and management deserves credit for trimming sales incentives to 12.9%. But context matters: a 15.6% gross margin is a shadow of what this business earned during the post-pandemic period, and incentives near 13% of price mean roughly one dollar in eight is being given back to close a sale.
Most telling was the guidance. Management cut full-year delivery guidance to 82,000–83,000 homes, citing what CFO Diane Bessette described as “current pressures on interest rates and continued macro uncertainty.”
For the fiscal third quarter, the company guided to earnings of $1.20 to $1.40 per share on 20,500–21,500 deliveries with an average sales price of $375,000 to $380,000 and gross margin near 16%. The Zacks Consensus Estimate sits at $1.30 per share, reflecting a 35% plunge versus the year-ago period.
Management also flagged expected losses of roughly $15 million in Multifamily, $20 million in Lennar Other, and $15 million across homebuilding joint ventures and land sales. A homebuilder guiding to losses across three segments simultaneously, with deliveries reduced and margins in the mid-teens, is not a company with momentum. These are precisely the types of negative trends that the bears like to see.
Technical Outlook
LEN stock has been carving out a well-defined downtrend. Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping lower, with shares trading below them near the lower end of their 52-week range.
The persistent decline has produced a classic “death cross,” wherein the 50-day moving average crosses below the 200-day moving average — a bearish technical signal that often precedes further weakness. Shares would need to mount a serious, high-volume move to the upside and show improving earnings estimate revisions to warrant taking any long positions.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock doesn’t deserve a spot in the household portfolio right now, and its membership in a weak industry group adds another headwind.
Falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend. Until long-term rates decline enough to restore affordability — the single variable that governs this entire industry — potential investors should give this stock the cold shoulder, or perhaps consider including it as part of a short or hedge strategy.
Additional content:
NVIDIA vs. AMD After Earnings: Which AI Stock Should You Buy Now?
NVIDIA Corp. and Advanced Micro Devices, Inc. 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.
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.???
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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PBF Energy and Lennar have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 11, 2026 – Zacks Equity Research shares PBF Energy (PBF - Free Report) as the Bull of the Day and Lennar Corporation (LEN - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA Corp. (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) .
Here is a synopsis of all four stocks.
Bull of the Day:
PBF Energy, a Zacks Rank #1 (Strong Buy), is having the kind of year that reminds investors why refining – for all its cyclicality – can produce extraordinary returns when the cycle turns.
The independent refiner has swung from losses to record profitability in the space of twelve months, and analysts have spent the summer racing to catch up to the numbers.
The stock has responded accordingly, climbing roughly 190% year to date against an 11% gain for the S&P 500 and touching record highs following its second-quarter report. That is the kind of relative strength, backed by accelerating fundamentals, that we look for.
A Leading Industry Group
PBF Energy is part of the Zacks Oil and Gas – Refining and Marketing industry group, a 15-stock cohort within the broader Zacks Oil-Energy sector. The group currently carries a Zacks Industry Rank of #8, placing it in the top 3% of nearly 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months:
Take note of the favorable characteristics for this group below. Stocks in this group are relatively undervalued and are expected to experience above-average earnings growth, signaling a powerful combination that should lead to higher prices in the future.
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
PBF Energy is one of the largest independent petroleum refiners in North America, operating six refineries across the East Coast, Mid-Continent, Gulf Coast and West Coast. Its system includes the Torrance, Martinez, Chalmette, Paulsboro, Delaware City and Toledo facilities, supported by a logistics network that moves crude in and products out. The company also holds a 50% interest in St. Bernard Renewables, a renewable diesel joint venture.
That geographic spread is the strategic point. Because PBF operates in every major U.S. refining region, it can capture advantageous crude differentials and product spreads wherever they open up — an unusually valuable trait when global trade flows are being rerouted. Management has spent the past two years focused on restoring full refining capability after the Martinez fire, improving asset reliability through its Refinery Business Improvement program, and strengthening the balance sheet.
Earnings Trends and Future Estimates
The second quarter was a blowout. PBF delivered adjusted earnings of $6.22 per share, reversing a year-ago loss of $1.03 and beating the Zacks Consensus Estimate of $4.05 by 53.6%. Revenues surged 56.2% year over year to $11.68 billion, topping consensus by roughly 37%.
The balance sheet transformation is equally striking. PBF reduced net debt by more than $1.4 billion during the quarter, cutting net debt to capitalization to 15%, and lowered its 2026 capital spending guidance to $825–$875 million by shifting the Chalmette and Toledo turnarounds into 2027 — a sensible decision that maximizes utilization while margins are elevated. The company declared a quarterly dividend of $0.275 per share.
The estimate revisions are what earn the Zacks Rank #1. Over the past 60 days, the consensus for the current quarter has surged 80.95%. The Zacks Consensus Estimate now stands at $6.84 per share — a change of more than 1,400% from the year-ago figure. PBF has topped consensus revenue estimates in each of the last four quarters and beaten on EPS in three of four.
Let’s Get Technical
PBF Energy has been one of the strongest performers in the entire energy complex. This is exactly the kind of stock we want to include in our portfolio — one that is trending well and receiving positive earnings estimate revisions.
Notice how shares reside above upward-sloping 50-day (blue line) and 200-day (red line) moving averages, the hallmark of a healthy bull trend, with the stock breaking to record territory on strong volume following the July earnings report.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, PBF has recently witnessed sharp upward revisions. As long as this trend remains intact (and PBF continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
Backed by a leading industry group and a powerful wave of upward estimate revisions, it’s not difficult to see why this refiner has captured investor attention. Currently, PBF sports the highly coveted Zacks Rank #1 (Strong Buy), placing it in the top 5% of Zacks-covered stocks on estimate revisions.
Management makes a credible case that the mid-cycle margin floor has risen structurally since product inventories are unlikely to normalize before well into 2027. With a deleveraged balance sheet, rising estimates and a top-8% industry behind it, PBF deserves a spot on your watchlist.
Bear of the Day:
Lennar Corporationis one of the largest homebuilders in the United States, constructing and selling homes across a wide range of price points — from entry-level and first-time buyers to move-up and active-adult communities.
Beyond homebuilding, the company operates a Financial Services segment providing mortgage, title and closing services, a Multifamily business, along with a technology and strategic investment unit. Founded in 1954, Lennar has built more than 1.5 million homes.
Despite its storied history, Lennar is caught in the teeth of the worst housing affordability environment in a generation, and the numbers show it. The core problem is straightforward: mortgage rates track the long end of the Treasury curve, and long-term yields have backed up sharply. Every basis point of increase pushes another cohort of buyers out of the market.
Lennar’s response has been to protect volume through incentives and price concessions — a strategy that keeps the production machine running but steadily erodes profitability. Compounding the affordability squeeze is the mortgage lock-in effect. Millions of existing homeowners hold mortgages at rates far below anything available today, which keeps them in place and starves the resale market of inventory.
That dynamic once benefited builders, since buyers unable to find existing homes turned to new construction. But it works only while buyers can afford the payment at all — and at current rates, a growing share simply cannot. New orders grew just 1% year over year in the first quarter, a telling signal for a company of this scale.
The Zacks Rundown
Lennar has been a clear laggard. Shares recently traded near $78, roughly 44% below their 52-week high, and the sell side has been cutting targets — JPMorgan lowered its objective to $77 with an Underweight rating, while Keefe Bruyette maintains an Underperform rating. A Zacks Rank #5 (Strong Sell), LEN reflects sharply unfavorable earnings estimate revision trends.
Shares are part of the Zacks Building Products – Home Builders industry group, which currently ranks in the bottom 21% out of approximately 250 Zacks Ranked Industries. Stocks in the bottom half of Zacks Ranked Industries face a persistent headwind, and while individual names can outperform a weak group, the industry association tends to cap the size and durability of any rally.
With far better alternatives available in the current market environment, this stock should be avoided.
Cracks in the Foundation: Shrinking Revenue and Falling Estimates
The second quarter told the story plainly. Lennar delivered 20,519 homes and generated revenue of $7.9 billion — short of the roughly $8 billion consensus and down 5.2% year over year. Net margin sat at just 4.93%, with shares falling about 5% on the news.
Gross margin of 15.6% represented modest sequential improvement, and management deserves credit for trimming sales incentives to 12.9%. But context matters: a 15.6% gross margin is a shadow of what this business earned during the post-pandemic period, and incentives near 13% of price mean roughly one dollar in eight is being given back to close a sale.
Most telling was the guidance. Management cut full-year delivery guidance to 82,000–83,000 homes, citing what CFO Diane Bessette described as “current pressures on interest rates and continued macro uncertainty.”
For the fiscal third quarter, the company guided to earnings of $1.20 to $1.40 per share on 20,500–21,500 deliveries with an average sales price of $375,000 to $380,000 and gross margin near 16%. The Zacks Consensus Estimate sits at $1.30 per share, reflecting a 35% plunge versus the year-ago period.
Management also flagged expected losses of roughly $15 million in Multifamily, $20 million in Lennar Other, and $15 million across homebuilding joint ventures and land sales. A homebuilder guiding to losses across three segments simultaneously, with deliveries reduced and margins in the mid-teens, is not a company with momentum. These are precisely the types of negative trends that the bears like to see.
Technical Outlook
LEN stock has been carving out a well-defined downtrend. Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping lower, with shares trading below them near the lower end of their 52-week range.
The persistent decline has produced a classic “death cross,” wherein the 50-day moving average crosses below the 200-day moving average — a bearish technical signal that often precedes further weakness. Shares would need to mount a serious, high-volume move to the upside and show improving earnings estimate revisions to warrant taking any long positions.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock doesn’t deserve a spot in the household portfolio right now, and its membership in a weak industry group adds another headwind.
Falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend. Until long-term rates decline enough to restore affordability — the single variable that governs this entire industry — potential investors should give this stock the cold shoulder, or perhaps consider including it as part of a short or hedge strategy.
Additional content:
NVIDIA vs. AMD After Earnings: Which AI Stock Should You Buy Now?
NVIDIA Corp. and Advanced Micro Devices, Inc. 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.
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.???
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.???????????????????????????
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Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.