Nvidia Poised to Outshine AMD Over Next 12 Months

Advanced Micro Devices (AMD) has seen its market value surge to over $1 trillion for the first time, following a 187% rise in 2026. Meanwhile, Nvidia's stock is up about 22% this year.

Nvidia expects revenue growth of approximately 70% in fiscal 2028, which management says is constrained by supply rather than demand. The company's chief financial officer, Colette Kress, stated that the cap on next year's growth is how many chips Nvidia can produce, not how many customers want them.

AMD's stock trades at about 40 times its expected 2027 earnings, while Nvidia's shares are valued at around 15 times its estimated fiscal 2028 earnings. The analyst team at The Motley Fool suggests that buying Nvidia today is a more reasonable choice due to its lower price-to-earnings ratio.

The prediction is that Nvidia stock will outperform AMD over the next 12 months, with Nvidia's price leaving room for ordinary disappointment. While AMD has seen strong growth in its data center segment, Nvidia's price does not require believing much more than what management has already stated.