Nvidia Poised to Outpace AMD in Next 12 Months
Nvidia is expected to outperform Advanced Micro Devices (AMD) over the next 12 months, according to a recent analysis. While AMD has surged nearly 190% this year, Nvidia's growth of about 22% seems more sustainable. Both companies have strong fundamentals, but their price-to-earnings ratios are vastly different.
Nvidia's fiscal 2027 second quarter saw revenue grow by an impressive 106% year-over-year to $96.2 billion, with the data center business driving much of this growth. The company guided for another significant increase in the current quarter and expects to continue growing at a rate limited only by supply constraints.
On the other hand, AMD's rally has already been priced into its stock, which trades at about 40 times expected 2027 earnings. This is a high price to pay for what management has already promised, particularly when compared to Nvidia's more modest P/E ratio of around 15.