Investment Comparison: AMD vs Nvidia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 52 minutes ago
0mins
Source: Fool
- Business Diversification: AMD's product range includes GPUs, CPUs, and embedded processors, with 56% of revenue from its data center division in Q1 2026, showcasing its diversified business model, which offers more stability compared to Nvidia's high concentration risk.
- Growth Potential: While AMD reported a 38% year-over-year revenue increase in Q1 with a 57% rise in its data center segment, Nvidia is projected to achieve 80% revenue growth in Q2 and 86% in Q3, highlighting Nvidia's robust performance in high-growth areas, despite AMD's commendable growth.
- Valuation Comparison: Nvidia's forward price-to-earnings ratio is half that of AMD's, despite its superior growth, indicating that Nvidia is undervalued in the current market, and investors should weigh the balance between strong companies and reasonable prices when making investment decisions.
- Long-term Investment Recommendation: Overall, while AMD excels in diversification, Nvidia clearly leads in growth rates and market share, making it a more attractive investment choice for long-term holders looking for better returns.
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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: 220.610
Low
200.00
Averages
264.97
High
352.00
Current: 220.610
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.
Nvidia Earnings Preview: Key Insights Ahead
- Earnings Preview: Nvidia is set to release its earnings on May 19, 2026, with market attention focused on its performance, particularly regarding ongoing investments and innovations in AI technology.
- Investment Advice: Despite Nvidia's strong past performance, the Motley Fool analyst team has not included it in their current top 10 stock recommendations, advising investors to proceed with caution.
- Historical Returns: Nvidia was recommended in 2005, and an investment of $1,000 at that time would now be worth $1,362,941, highlighting its robust long-term return potential.
- Market Performance Comparison: Stock Advisor boasts an average return of 998%, significantly outperforming the S&P 500's 207%, indicating the superiority and market impact of its recommended stocks.
See More
Nvidia Faces Record Short Exposure Ahead of Q1 Earnings
- Record Short Position: According to S3 Partners, Nvidia's notional net short exposure has reached approximately $62.5 billion, making it the largest single-name short in the S&P 500, significantly surpassing Apple's $38.5 billion and Microsoft's $33.7 billion, indicating heavy reliance on the stock as a hedge.
- High Short Interest: Nvidia's short interest, measured at 281 million shares and 1.2% of float, is near 52-week highs, suggesting that much of this positioning reflects hedging activity rather than outright bearish bets, leveraging its liquidity and high-beta AI exposure.
- Price Volatility Expectations: Nvidia closed at $220.60 on Tuesday, below its 52-week high of $236.50 but above its 50-day moving average of $194.7, with the options market pricing in a potential post-earnings move of about 5%, translating to a $3.5 billion mark-to-market swing for short sellers.
- Market Sentiment Warning: Michael Kramer of Mott Capital Management cautions that Nvidia may be caught in what he describes as an “epic squeeze” driven by euphoric options activity, suggesting that this positioning could reset following earnings as implied volatility collapses.
See More
Walter Deemer Warns of Potential Risks for Nvidia
- Historical Lesson: Walter Deemer draws a parallel between the rise and fall of National Video in the 1960s and potential risks facing Nvidia today, as National Video surged from $15 in 1964 to $120 by October 1965 due to its 23-inch tube production, only to collapse to zero by 1968 when major customers began manufacturing their own tubes, marking it as a classic case of a 'fundamental short'.
- Customer Self-Manufacturing Risk: Deemer highlights that Nvidia's major cloud customers are expanding their own AI chip and infrastructure capabilities, which could undermine Nvidia's competitive edge, especially as investor concerns grow ahead of its upcoming quarterly earnings report, potentially leading to stock price volatility.
- Market Reaction: With Nvidia's earnings report on the horizon, over 800 ETFs are closely monitoring its performance, reflecting market skepticism about Nvidia's ability to maintain its competitive advantage amidst the trend of customers producing their own chips, which could impact investor confidence.
- Industry Dynamics: Deemer's analysis resonates with recent market reactions to AI chip rebounds and short-selling strategies against Nvidia, illustrating the complex attitudes investors have towards the future of the AI industry, particularly in light of increasing competition and technological changes.
See More
Major Earnings Reports Expected After Wednesday's Close
- Major Earnings Reports: After Wednesday's close, key companies including NVIDIA (NVDA), Intuit (INTU), Star Bulk Carriers (SBLK), Urban Outfitters (URBN), and e.l.f. Beauty (ELF) are set to release their earnings, with market participants keenly anticipating their performance, which could significantly impact stock prices.
- Market Reaction Expectations: Investors are particularly focused on NVIDIA's earnings due to its ongoing growth in the artificial intelligence sector, which may lead to notable stock price fluctuations; additionally, the results from Intuit and Urban Outfitters could influence sentiment in their respective industries.
- Additional Earnings Releases: In addition to the major companies, earnings from AVEX, BORR, CLIR, ENS, and NDSN are also scheduled for release after Wednesday's close, providing the market with further insights into industry dynamics and economic signals.
- Earnings Season Calendar: Seeking Alpha offers a comprehensive earnings season calendar, allowing investors to access more information to better navigate market opportunities and risks.
See More
Investment Comparison: AMD vs Nvidia
- Business Diversification: AMD's product range includes GPUs, CPUs, and embedded processors, with 56% of revenue from its data center division in Q1 2026, showcasing its diversified business model, which offers more stability compared to Nvidia's high concentration risk.
- Growth Potential: While AMD reported a 38% year-over-year revenue increase in Q1 with a 57% rise in its data center segment, Nvidia is projected to achieve 80% revenue growth in Q2 and 86% in Q3, highlighting Nvidia's robust performance in high-growth areas, despite AMD's commendable growth.
- Valuation Comparison: Nvidia's forward price-to-earnings ratio is half that of AMD's, despite its superior growth, indicating that Nvidia is undervalued in the current market, and investors should weigh the balance between strong companies and reasonable prices when making investment decisions.
- Long-term Investment Recommendation: Overall, while AMD excels in diversification, Nvidia clearly leads in growth rates and market share, making it a more attractive investment choice for long-term holders looking for better returns.
See More
Target Q1 2026 Earnings Beat Expectations Amid Macro Uncertainty
- Earnings Beat: Target reported Q1 2026 net sales of $25.4 billion, a 6% year-over-year increase, with adjusted EPS of $1.71 surpassing the $1.46 consensus, indicating robust performance in a competitive retail landscape.
- Guidance Raised: Management raised the full-year sales growth guidance to 4%, doubling the previous forecast, reflecting confidence in future performance despite ongoing macroeconomic uncertainties.
- Market Reaction: Despite strong results, Target's stock fell 7% post-report, reflecting investor concerns over macro outlook and a 'sell-the-news' mentality, highlighting market sensitivity to high valuations.
- Competitive Landscape: Target's strong performance provides a positive signal for upcoming earnings from Walmart and Costco, but also cautions investors to remain vigilant in a high-valuation environment to avoid overreacting to market sentiment.
See More
Nvidia Earnings Preview: Key Insights Ahead
- Earnings Preview: Nvidia is set to release its earnings on May 19, 2026, with market attention focused on its performance, particularly regarding ongoing investments and innovations in AI technology.
- Investment Advice: Despite Nvidia's strong past performance, the Motley Fool analyst team has not included it in their current top 10 stock recommendations, advising investors to proceed with caution.
- Historical Returns: Nvidia was recommended in 2005, and an investment of $1,000 at that time would now be worth $1,362,941, highlighting its robust long-term return potential.
- Market Performance Comparison: Stock Advisor boasts an average return of 998%, significantly outperforming the S&P 500's 207%, indicating the superiority and market impact of its recommended stocks.
See More
Nvidia Faces Record Short Exposure Ahead of Q1 Earnings
- Record Short Position: According to S3 Partners, Nvidia's notional net short exposure has reached approximately $62.5 billion, making it the largest single-name short in the S&P 500, significantly surpassing Apple's $38.5 billion and Microsoft's $33.7 billion, indicating heavy reliance on the stock as a hedge.
- High Short Interest: Nvidia's short interest, measured at 281 million shares and 1.2% of float, is near 52-week highs, suggesting that much of this positioning reflects hedging activity rather than outright bearish bets, leveraging its liquidity and high-beta AI exposure.
- Price Volatility Expectations: Nvidia closed at $220.60 on Tuesday, below its 52-week high of $236.50 but above its 50-day moving average of $194.7, with the options market pricing in a potential post-earnings move of about 5%, translating to a $3.5 billion mark-to-market swing for short sellers.
- Market Sentiment Warning: Michael Kramer of Mott Capital Management cautions that Nvidia may be caught in what he describes as an “epic squeeze” driven by euphoric options activity, suggesting that this positioning could reset following earnings as implied volatility collapses.
See More
Walter Deemer Warns of Potential Risks for Nvidia
- Historical Lesson: Walter Deemer draws a parallel between the rise and fall of National Video in the 1960s and potential risks facing Nvidia today, as National Video surged from $15 in 1964 to $120 by October 1965 due to its 23-inch tube production, only to collapse to zero by 1968 when major customers began manufacturing their own tubes, marking it as a classic case of a 'fundamental short'.
- Customer Self-Manufacturing Risk: Deemer highlights that Nvidia's major cloud customers are expanding their own AI chip and infrastructure capabilities, which could undermine Nvidia's competitive edge, especially as investor concerns grow ahead of its upcoming quarterly earnings report, potentially leading to stock price volatility.
- Market Reaction: With Nvidia's earnings report on the horizon, over 800 ETFs are closely monitoring its performance, reflecting market skepticism about Nvidia's ability to maintain its competitive advantage amidst the trend of customers producing their own chips, which could impact investor confidence.
- Industry Dynamics: Deemer's analysis resonates with recent market reactions to AI chip rebounds and short-selling strategies against Nvidia, illustrating the complex attitudes investors have towards the future of the AI industry, particularly in light of increasing competition and technological changes.
See More
Major Earnings Reports Expected After Wednesday's Close
- Major Earnings Reports: After Wednesday's close, key companies including NVIDIA (NVDA), Intuit (INTU), Star Bulk Carriers (SBLK), Urban Outfitters (URBN), and e.l.f. Beauty (ELF) are set to release their earnings, with market participants keenly anticipating their performance, which could significantly impact stock prices.
- Market Reaction Expectations: Investors are particularly focused on NVIDIA's earnings due to its ongoing growth in the artificial intelligence sector, which may lead to notable stock price fluctuations; additionally, the results from Intuit and Urban Outfitters could influence sentiment in their respective industries.
- Additional Earnings Releases: In addition to the major companies, earnings from AVEX, BORR, CLIR, ENS, and NDSN are also scheduled for release after Wednesday's close, providing the market with further insights into industry dynamics and economic signals.
- Earnings Season Calendar: Seeking Alpha offers a comprehensive earnings season calendar, allowing investors to access more information to better navigate market opportunities and risks.
See More
Investment Comparison: AMD vs Nvidia
- Business Diversification: AMD's product range includes GPUs, CPUs, and embedded processors, with 56% of revenue from its data center division in Q1 2026, showcasing its diversified business model, which offers more stability compared to Nvidia's high concentration risk.
- Growth Potential: While AMD reported a 38% year-over-year revenue increase in Q1 with a 57% rise in its data center segment, Nvidia is projected to achieve 80% revenue growth in Q2 and 86% in Q3, highlighting Nvidia's robust performance in high-growth areas, despite AMD's commendable growth.
- Valuation Comparison: Nvidia's forward price-to-earnings ratio is half that of AMD's, despite its superior growth, indicating that Nvidia is undervalued in the current market, and investors should weigh the balance between strong companies and reasonable prices when making investment decisions.
- Long-term Investment Recommendation: Overall, while AMD excels in diversification, Nvidia clearly leads in growth rates and market share, making it a more attractive investment choice for long-term holders looking for better returns.
See More
Target Q1 2026 Earnings Beat Expectations Amid Macro Uncertainty
- Earnings Beat: Target reported Q1 2026 net sales of $25.4 billion, a 6% year-over-year increase, with adjusted EPS of $1.71 surpassing the $1.46 consensus, indicating robust performance in a competitive retail landscape.
- Guidance Raised: Management raised the full-year sales growth guidance to 4%, doubling the previous forecast, reflecting confidence in future performance despite ongoing macroeconomic uncertainties.
- Market Reaction: Despite strong results, Target's stock fell 7% post-report, reflecting investor concerns over macro outlook and a 'sell-the-news' mentality, highlighting market sensitivity to high valuations.
- Competitive Landscape: Target's strong performance provides a positive signal for upcoming earnings from Walmart and Costco, but also cautions investors to remain vigilant in a high-valuation environment to avoid overreacting to market sentiment.
See More
