Nvidia Poised to Outshine AMD Over Next 12 Months

Advanced Micro Devices (AMD) recently surpassed $1 trillion in market value for the first time, capping off a remarkable 187% rise this year. This milestone makes AMD one of four U.S. chipmakers to clear that threshold. In contrast, Nvidia (NVDA) has seen its stock price grow by about 22% in 2026.

Nvidia's growth is expected to continue, with management guiding for a 70% revenue increase in fiscal 2028, citing supply constraints rather than demand limitations. The company's chief financial officer, Colette Kress, stated that the growth is constrained by how many chips Nvidia can produce, not how many customers want them.

On the other hand, AMD's rally has already priced in significant expectations for next year. At its current price of around $615.52, AMD trades at about 40 times expected 2027 earnings. This valuation requires investors to believe that the market will pay up again a year from now for whatever 2028 is expected to hold.

Given these dynamics, analysts expect Nvidia stock to outperform AMD over the next 12 months. While both companies are executing well, Nvidia's price leaves more room for ordinary disappointment.