AMD Rises to $1 Trillion, But Can It Overtake Nvidia?

AMD's stock price has surged nearly 200% this year, propelling the company to a $1 trillion market capitalization. While Nvidia remains ahead with a $5.5 trillion valuation, AMD's rapid growth has some investors wondering if it can finally dethrone its rival.

Nvidia is growing faster and larger than AMD, with a data center division that's over 10 times the size of AMD's. However, AMD's stock price is significantly higher than Nvidia's, trading at 158 times trailing earnings compared to Nvidia's 30 times.

Experts point out that this discrepancy may be due to market valuations rather than actual performance. If AMD investors are expecting a 25% downside next year, while Nvidia investors expect their stock to double, it could be a sign of an impending correction.