Stocks
Nvidia Edges Out AMD as Top Chipmaker Amid AI Boom
Advanced Micro Devices (AMD) has seen its stock price surge 187% in 2026, reaching over $1 trillion in market value. This milestone makes AMD the fourth U.S. chipmaker to surpass this threshold.
Nvidia's (NVDA) stock price, while still strong with a 22% gain for the year, has not reached record highs since mid-May. Despite being more than five times larger than AMD and currently growing faster, Nvidia's stock trades at about 15 times its expected earnings in fiscal 2028.
According to analysts, we are only at the end of 'Act 1' of AI adoption, the R&D phase, with 'Act 2' being the global rollout. This suggests that AI-related demand will continue to drive growth for chipmakers like Nvidia and AMD.