As artificial intelligence (AI) continues to reshape technology markets, investors remain on the hunt for the best opportunities.
In this context, two sector giants, Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD), are at the center of attention, both competing for dominance in the rapidly expanding AI hardware space.
With 2026 on the horizon, Finbold consulted OpenAI’s ChatGPT to determine which of these two semiconductor leaders is the better option to buy in the new year.
ChatGPT’s analysis highlighted several fundamental factors shaping the outlook for these companies.
Nvidia (NASDAQ: NVDA)
Nvidia trades at around $182, supported by robust earnings and strong AI-driven demand. Its recent strategic $2 billion investment in Synopsys to co-develop AI design software points to a broader push beyond hardware, reflecting the company’s ambition to build an integrated AI ecosystem.
ChatGPT noted that Nvidia could see roughly 70% earnings growth in 2026, reflecting its market leadership and enterprise adoption.
The model also pointed out that while these fundamentals suggest strong growth, the stock’s premium valuation leaves less room for short-term upside and exposes it to broader macroeconomic and competitive risks.
AMD (NASDAQ: AMD)
On the other hand, AMD currently trades near $218 and offers a lower-valuation alternative with a different risk-reward profile.
The company expects data-center revenue to grow about 60% over the next three to five years, supported by its cost-efficient AI GPU lineup and hybrid CPU-GPU solutions.
AMD’s diversified segments, including CPUs, GPUs, and servers, provide optionality, particularly if its upcoming product launches in AI GPUs and server platforms succeed.
However, ChatGPT warned that AMD faces execution risk, competitive pressure in the high-end AI GPU market, and recent softness in gaming and PC segments, which remain important revenue components.
The verdict
Weighing these fundamentals and market positions, ChatGPT concluded that for investors seeking growth, leadership, and relative safety in AI exposure, Nvidia emerges as the more compelling choice for 2026.
AMD may appeal to risk-tolerant investors seeking higher potential returns if execution goes smoothly, but Nvidia’s combination of strong earnings, AI market dominance, and ecosystem expansion makes it the primary candidate for those aiming to capture the AI boom with confidence.
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