AMD Closes Gap on Nvidia as Data Center Revenue Prepares to Soar
Nvidia and AMD are two companies that have been making waves in the tech industry due to their strong presence in the AI sector.
While Nvidia has been dominating with its superior operating margins of 60% and ROE of 101.5%, AMD is catching up, having surged by 143% YTD compared to Nvidia's 20% growth.
One key factor that is contributing to AMD's success is the company's Data Center segment, which has more than doubled in revenue year-over-year in 2027, according to a forecast made by Lisa Su.
The setup reminds me of Data Center CPUs five years ago: a credible number-two closing a gap that markets priced as permanent. With Helios shipping, Anthropic and Meta anchoring multi-gigawatt commitments, and 2027 estimates still rising weekly, the asymmetry favors AMD.