AMD's Growth Accelerates While Nvidia's Earnings Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy AMD?
Source: NASDAQ.COM
- Market Performance Comparison: Over the past year, AMD's stock surged by 77%, outperforming Nvidia's 39% increase, indicating investor confidence in AMD's future potential, despite Nvidia's more than 1,300% rise over the last five years.
- Profitability Discrepancy: Nvidia generated nearly $100 billion in earnings over the past 12 months, while AMD's net income totaled just $3.3 billion in the last four quarters, highlighting a significant gap in profitability that may influence long-term investor decisions.
- Future Growth Expectations: CEO Lisa Su anticipates that AMD's revenue will grow by over 35% annually in the next three to five years, suggesting strong market demand for its new chips, which could lead to increased market share.
- Investment Value Analysis: Although AMD's P/E ratio stands at 37, lower than Nvidia's 24, investors must remain cautious in their choices, as Nvidia's profitability and market position are formidable, making AMD's earnings improvement crucial for its investment appeal.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 210.210
Low
210.00
Averages
289.13
High
377.00
Current: 210.210
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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