AMD and Nvidia Hit Records on Different Paths
Advanced Micro Devices (AMD) and Nvidia have both reached all-time highs, but their paths to these milestones are distinctly different. AMD's stock surge reflects concrete business developments, including major contracts with OpenAI and Oracle. OpenAI committed to a six-gigawatt MI450 deployment and holds warrants for up to 160 million AMD shares. Oracle ordered 50,000 MI450 GPUs, beginning in the third quarter. These deals confirm that hyperscaler AI buildouts can succeed without relying solely on Nvidia. AMD's financial performance is improving rapidly, with second-quarter revenue hitting a record $11.5 billion, driven by a 100% year-over-year increase in data center sales.
Nvidia's record high is attributed to a massive share buyback program. The company authorized an additional $150 billion for share repurchases, bringing the total to $235 billion through fiscal 2028. This is the largest single increase to a buyback program in corporate history. Nvidia's management timed this move when the company's earnings multiple was near a decade-low, signaling confidence in its perceived value. The company's second-quarter revenue surged 106% to $96.2 billion, with data center revenue representing 92% of the business.
Looking ahead, both companies are set to report earnings within two weeks of each other. AMD, guided to $13 billion in third-quarter revenue, is expected to grow 41% year-over-year. Nvidia's guidance of $108.0 billion in revenue assumes no data center revenue from China, leaving room for upside. The return of Nvidia to record territory on a buyback rather than a product announcement suggests the market is repricing the leader based on earnings rather than narrative.
The current rally highlights which stock lagged: Nvidia underperformed in 2026 as capital rotated into other chipmakers. If AMD confirms durable data center momentum and Nvidia guides the January quarter above consensus, the group could have further upside.