Competitive Analysis of AMD and Nvidia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Should l Buy NVDA?
Source: Fool
- Stock Performance Comparison: Since 2023, Nvidia's stock has surged by 1,120%, while AMD has also shown strong performance with a 242% increase, highlighting the intense competition between the two in the AI sector.
- Significant Revenue Disparity: Nvidia's most recent quarterly revenue reached $68.2 billion, up 73% year-over-year, compared to AMD's $10.3 billion, which grew by 34%, indicating Nvidia's dominance in the data center business.
- Growth Expectations and Strategy: AMD projects a 35% compound annual growth rate (CAGR) for revenue over the next five years, with its data center division expected to grow at a remarkable 60%, potentially enhancing its competitive position in the market.
- Valuation Discrepancy Analysis: Despite Nvidia's faster growth, its stock is valued lower than AMD's, requiring investors to pay over a 50% premium for AMD shares, making Nvidia a more attractive investment option.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVDA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 183.910
Low
200.00
Averages
264.97
High
352.00
Current: 183.910
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
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.
Geopolitical Risks Drive Investment in Clean Energy ETFs
- Investment Shift: Institutional capital is moving towards diversified energy infrastructure and clean energy ETFs due to geopolitical risks in the Middle East and rising oil prices, indicating a cautious market stance on direct oil investments and likely driving continued growth in these ETFs.
- Strong Performance of PBW: The Invesco WilderHill Clean Energy ETF has surged 118% in the past month, primarily driven by organic demand growth, highlighting the critical role of clean energy in the global energy transition, especially amid high oil prices.
- Steady Growth of EMLP: The First Trust North American Energy Infrastructure ETF has gained 15.7% year-to-date, maintaining stability despite falling oil prices, demonstrating its resilience in the energy infrastructure sector and expected to continue attracting investor interest.
- URAN's Potential: The Themes Uranium & Nuclear ETF has surged 75% over the past year, driven by increasing demand from data centers for energy supplies, and is expected to continue growing in the coming years, particularly as nuclear power emerges as a stable energy source.
See More
Amazon's Cloud Computing Business Thrives
- Cloud Revenue Surge: Amazon's cloud division, AWS, has reached an annual revenue run rate of $142 billion, accounting for nearly 60% of the company's operating income, indicating a significant enhancement in its market dominance and profitability.
- Chip Demand Explosion: The demand for Amazon's in-house developed Trainium2 chips is nearly sold out, while the newly launched Trainium3 is almost fully subscribed, with the chip business projected to exceed $20 billion in annual revenue, reflecting robust market demand.
- Potential Market Competition: Amazon's CEO Andy Jassy indicated that the company may sell chips to third parties in the future, predicting that such a move could lead to an annual revenue run rate of $50 billion, which would exert pressure on competitors like Nvidia.
- Increased Innovation Pressure: Although AWS does not directly compete with Nvidia, the emergence of Amazon's chip business will compel Nvidia to accelerate its innovation pace to maintain market share, making it crucial for investors to monitor the long-term implications of this dynamic on Nvidia.
See More
Roundhill Magnificent Seven ETF Delivers Impressive Returns
- Annual Returns: The Roundhill Magnificent Seven ETF has achieved an impressive average annual return of 34.27% over the past three years, highlighting its strong performance in tech stock investments and attracting significant investor interest.
- Investment Potential: By investing $500 monthly in MAGS, investors could potentially reach $1 million in 14 years, making this ETF an attractive option for those seeking long-term wealth growth.
- Fee Structure: With an expense ratio of 0.29%, while relatively low, investors must weigh the value of paying management fees for just seven stocks, especially in a volatile market environment.
- Market Performance: Despite its past success, MAGS has declined by 9.4% year-to-date and has underperformed compared to the S&P 500 and Nasdaq-100 indices, serving as a cautionary note for investors to carefully assess future investment risks.
See More
Investment Opportunities from 2026 Market Rotation
- Market Rotation Trend: In 2026, the rotation away from tech and growth stocks has led to value, dividend, and small-cap stocks outperforming the S&P 500, indicating potential structural changes in the market that could offer long-term returns for investors.
- Dividend Stock Comeback: The Schwab U.S. Dividend Equity ETF (SCHD) achieved a 12.4% year-to-date return in 2026, benefiting from a portfolio reconstitution that positioned 40% in energy and consumer staples, suggesting its performance may continue to improve in a risk-off environment.
- Structural Advantage in Energy Stocks: The State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) recorded a 43.4% return in 2026, with a low price-to-earnings ratio of 11 and a robust U.S. energy independence narrative, making it attractive for investors looking to capitalize on energy sector growth despite price fluctuations.
- AI Potential of South Korean ETF: The iShares MSCI South Korea ETF (EWY) has surged approximately 180% since early 2025, and while short-term gains may seem exhausted, its critical role in the semiconductor supply chain, particularly with major holdings like Samsung and SK Hynix, could still provide ongoing growth opportunities for investors.
See More
Trump's Weekend Activities and Surge in Oil Prices
- Surge in Oil Prices: Crude oil futures jumped over 8% on Monday as the U.S. Navy prepares to blockade Iranian ports, with U.S. crude surpassing $100 per barrel and Brent also rising over 8%, indicating significant implications for the global energy market.
- Military Blockade Announcement: U.S. Central Command stated that it will begin blocking all maritime traffic entering and exiting Iranian ports at 10 a.m. ET on Monday, a move that could disrupt international supply chains related to Iran and significantly impact global oil prices.
- Trump's Dispute with the Pope: Trump criticized Pope Leo XIV on social media for his stance on the U.S. war in Iran, asserting he does not want a Pope who criticizes him, reflecting a hardline approach in both domestic and foreign policy that may affect his supporters' confidence.
- Hungarian Election Results: The election results in Hungary indicate a victory for the opposition Tisza party, marking the first new government in 16 years, which poses a challenge to Trump and his allies in Europe and may lead to future policy adjustments.
See More
Potential of Investing in the Magnificent Seven ETF
- Annual Return Rate: Since its launch on April 11, 2023, the Roundhill Magnificent Seven ETF (MAGS) has achieved an impressive annual return rate of 34.27%, indicating strong performance among tech stocks, although future performance may not meet expectations.
- Portfolio Structure: MAGS holds only seven major tech stocks, including Amazon (15.8%), Alphabet (15.1%), and Tesla (12.6%), and is rebalanced quarterly to avoid over-concentration in any single stock, thereby reducing investment risk.
- Wealth Growth Potential: Assuming a monthly investment of $500 with a sustained annual return of 34.27%, one could accumulate $58,899 after five years, $315,939 after ten years, and potentially exceed $1 million after fourteen years, highlighting the appeal of long-term investing.
- Market Risk Warning: Despite MAGS's strong past performance, it has declined 9.4% year-to-date and faces risks from the overall weakness in tech stocks, prompting investors to carefully assess the potential risks of concentrated investments and the reasonableness of management fees.
See More
Geopolitical Risks Drive Investment in Clean Energy ETFs
- Investment Shift: Institutional capital is moving towards diversified energy infrastructure and clean energy ETFs due to geopolitical risks in the Middle East and rising oil prices, indicating a cautious market stance on direct oil investments and likely driving continued growth in these ETFs.
- Strong Performance of PBW: The Invesco WilderHill Clean Energy ETF has surged 118% in the past month, primarily driven by organic demand growth, highlighting the critical role of clean energy in the global energy transition, especially amid high oil prices.
- Steady Growth of EMLP: The First Trust North American Energy Infrastructure ETF has gained 15.7% year-to-date, maintaining stability despite falling oil prices, demonstrating its resilience in the energy infrastructure sector and expected to continue attracting investor interest.
- URAN's Potential: The Themes Uranium & Nuclear ETF has surged 75% over the past year, driven by increasing demand from data centers for energy supplies, and is expected to continue growing in the coming years, particularly as nuclear power emerges as a stable energy source.
See More
Amazon's Cloud Computing Business Thrives
- Cloud Revenue Surge: Amazon's cloud division, AWS, has reached an annual revenue run rate of $142 billion, accounting for nearly 60% of the company's operating income, indicating a significant enhancement in its market dominance and profitability.
- Chip Demand Explosion: The demand for Amazon's in-house developed Trainium2 chips is nearly sold out, while the newly launched Trainium3 is almost fully subscribed, with the chip business projected to exceed $20 billion in annual revenue, reflecting robust market demand.
- Potential Market Competition: Amazon's CEO Andy Jassy indicated that the company may sell chips to third parties in the future, predicting that such a move could lead to an annual revenue run rate of $50 billion, which would exert pressure on competitors like Nvidia.
- Increased Innovation Pressure: Although AWS does not directly compete with Nvidia, the emergence of Amazon's chip business will compel Nvidia to accelerate its innovation pace to maintain market share, making it crucial for investors to monitor the long-term implications of this dynamic on Nvidia.
See More
Roundhill Magnificent Seven ETF Delivers Impressive Returns
- Annual Returns: The Roundhill Magnificent Seven ETF has achieved an impressive average annual return of 34.27% over the past three years, highlighting its strong performance in tech stock investments and attracting significant investor interest.
- Investment Potential: By investing $500 monthly in MAGS, investors could potentially reach $1 million in 14 years, making this ETF an attractive option for those seeking long-term wealth growth.
- Fee Structure: With an expense ratio of 0.29%, while relatively low, investors must weigh the value of paying management fees for just seven stocks, especially in a volatile market environment.
- Market Performance: Despite its past success, MAGS has declined by 9.4% year-to-date and has underperformed compared to the S&P 500 and Nasdaq-100 indices, serving as a cautionary note for investors to carefully assess future investment risks.
See More
Investment Opportunities from 2026 Market Rotation
- Market Rotation Trend: In 2026, the rotation away from tech and growth stocks has led to value, dividend, and small-cap stocks outperforming the S&P 500, indicating potential structural changes in the market that could offer long-term returns for investors.
- Dividend Stock Comeback: The Schwab U.S. Dividend Equity ETF (SCHD) achieved a 12.4% year-to-date return in 2026, benefiting from a portfolio reconstitution that positioned 40% in energy and consumer staples, suggesting its performance may continue to improve in a risk-off environment.
- Structural Advantage in Energy Stocks: The State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) recorded a 43.4% return in 2026, with a low price-to-earnings ratio of 11 and a robust U.S. energy independence narrative, making it attractive for investors looking to capitalize on energy sector growth despite price fluctuations.
- AI Potential of South Korean ETF: The iShares MSCI South Korea ETF (EWY) has surged approximately 180% since early 2025, and while short-term gains may seem exhausted, its critical role in the semiconductor supply chain, particularly with major holdings like Samsung and SK Hynix, could still provide ongoing growth opportunities for investors.
See More
Trump's Weekend Activities and Surge in Oil Prices
- Surge in Oil Prices: Crude oil futures jumped over 8% on Monday as the U.S. Navy prepares to blockade Iranian ports, with U.S. crude surpassing $100 per barrel and Brent also rising over 8%, indicating significant implications for the global energy market.
- Military Blockade Announcement: U.S. Central Command stated that it will begin blocking all maritime traffic entering and exiting Iranian ports at 10 a.m. ET on Monday, a move that could disrupt international supply chains related to Iran and significantly impact global oil prices.
- Trump's Dispute with the Pope: Trump criticized Pope Leo XIV on social media for his stance on the U.S. war in Iran, asserting he does not want a Pope who criticizes him, reflecting a hardline approach in both domestic and foreign policy that may affect his supporters' confidence.
- Hungarian Election Results: The election results in Hungary indicate a victory for the opposition Tisza party, marking the first new government in 16 years, which poses a challenge to Trump and his allies in Europe and may lead to future policy adjustments.
See More
Potential of Investing in the Magnificent Seven ETF
- Annual Return Rate: Since its launch on April 11, 2023, the Roundhill Magnificent Seven ETF (MAGS) has achieved an impressive annual return rate of 34.27%, indicating strong performance among tech stocks, although future performance may not meet expectations.
- Portfolio Structure: MAGS holds only seven major tech stocks, including Amazon (15.8%), Alphabet (15.1%), and Tesla (12.6%), and is rebalanced quarterly to avoid over-concentration in any single stock, thereby reducing investment risk.
- Wealth Growth Potential: Assuming a monthly investment of $500 with a sustained annual return of 34.27%, one could accumulate $58,899 after five years, $315,939 after ten years, and potentially exceed $1 million after fourteen years, highlighting the appeal of long-term investing.
- Market Risk Warning: Despite MAGS's strong past performance, it has declined 9.4% year-to-date and faces risks from the overall weakness in tech stocks, prompting investors to carefully assess the potential risks of concentrated investments and the reasonableness of management fees.
See More
