Advanced Micro Devices increased by 9.0% in Wednesday’s trading, after the company indicated that it expected annual data center chip sales of $100 billion within the next five years, with its earnings more than tripling.
Nvidia co-founder and CEO Jensen Huang delivers the first keynote speech of Computex 2025 at the Taipei Music Center in Taipei on May 19, 2025. (Photo by I-Hwa Cheng / AFP) (Photo by I-HWA CHENG/AFP via Getty Images)
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Given the strong move, you might feel inclined to purchase more shares or perhaps consider decreasing your investments. However, you might be overlooking a completely different angle. Is there a superior alternative? It turns out that its competitor NVIDIA offers more benefits. NVIDIA (NVDA) stock presents stronger revenue growth across important periods, enhanced profitability, and a relatively lower valuation compared to Advanced Micro Devices (AMD) stock, indicating that investing in NVDA might be a wiser choice.
- NVDA’s quarterly revenue growth was 55.6%, compared to AMD’s 35.6%.
- Moreover, its Last 12 Months revenue growth reached 71.6%, surpassing AMD’s 31.8%.
- NVDA excels in profitability across both periods – with a last twelve months margin of 58.1% and a three-year average of 51.0%.
These variations become even more apparent when you examine the financials side by side. The data underscores how AMD’s fundamentals compare with those of NVDA in terms of growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
Overview
Trefis
Note: For “Last 3 Year Return” metric, the preferred stock is one with higher returns unless the returns are excessively high (>300%) which creates a risk of sell-off.
See more revenue details: AMD Revenue Comparison | NVDA Revenue Comparison
See more margin details: AMD Operating Income Comparison | NVDA Operating Income Comparison
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You can view comprehensive fundamentals on Buy or Sell NVDA Stock and Buy or Sell AMD Stock and evaluate which stock seems more attractive. Nonetheless, the excitement of stock-picking diminishes quickly when volatility strikes. Intelligent financial advisors maintain an edge by merging insights with actions, directing client investments into diversified portfolios that perform across cycles.
Returning to the comparison, let’s examine how these two stocks have performed for investors over the past few years.
Historical Market Performance
Returns
Trefis
Regardless of how promising the figures appear, investing in stocks is never a seamless journey. There is an inherent risk that you must consider. Read NVDA Dip Buyer Analyses and AMD Dip Buyer Analyses to understand how these stocks have declined and rebounded in the past.
Whatever your stance on either of these stocks, investing in one or two stocks continues to be a risky venture. Alternatively, the Trefis High Quality (HQ) Portfolio, containing a selection of 30 stocks, has a track record of comfortably outperforming its benchmark that encompasses all three — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? Collectively, HQ Portfolio stocks have delivered superior returns with diminished risk compared to the benchmark index; offering a smoother investment journey, as shown in HQ Portfolio performance metrics.