AMD and Nvidia Hit Records on Contrasting Paths
Advanced Micro Devices (AMD) and Nvidia have both hit all-time highs, but their paths to these records tell different stories. AMD's rally is backed by concrete contracts, including a major deal with OpenAI for a six-gigawatt MI450 deployment and a commitment from Oracle for 50,000 MI450 GPUs. These orders have shifted market perception, proving that AI infrastructure can be built around alternatives to Nvidia. AMD's second-quarter revenue hit a record $11.5 billion, with data center sales accounting for 58% of the total and growing over 100% year-over-year. The company also completed an $8.2 billion acquisition of World Labs, expanding its AI capabilities.
Nvidia's record high was driven by a different catalyst: a massive share buyback program. In September, the company authorized an additional $150 billion for share repurchases, the largest single increase in corporate history. This move came at a time when Nvidia's earnings multiple was near a decade low, signaling confidence in its undervalued stock. Supporting this decision, Foxconn reported its strongest month ever, and Nvidia's second-quarter revenue surged to $96.2 billion, with data center revenue making up 92% of the business.
Both companies are set to report their next quarterly results within two weeks of each other. AMD, with a Zacks Rank of #3 (Hold), is expected to report on November 3rd with projected revenue of approximately $13 billion, a 41% year-over-year growth. Nvidia, with a Zacks Rank of #1 (Strong Buy), will report in mid-November with guidance pointing to $108.0 billion in revenue, a near 90% earnings growth from the previous year. Notably, Nvidia's guidance assumes no data center revenue from China, leaving potential upside unaccounted for.
The market's repricing of Nvidia on earnings rather than narrative, coupled with AMD's confirmed data center momentum, suggests that the AI sector may have further room to run. The shift from Nvidia's underperformance in 2026 to its current record highs indicates a broader repricing of the AI trade, with both companies poised for continued growth.