Insider Monkey favors Nvidia over AMD on risk-adjusted value: a common S&P Global measure updated Sept. 24 put their forward earnings multiples at 18.7x and 55.6x, respectively. It says AMD’s premium requires sustained share gains and margin expansion.
AMD reported second-quarter revenue of $11.5 billion, up 50% year over year, including $6.7 billion in Data Center revenue, more than double. It forecast about $13 billion in third-quarter revenue, implying roughly 41% growth. Nvidia reported $96.2 billion in second-quarter revenue, up 106%, including $89 billion from Data Center, up 117%; its third-quarter revenue outlook was $108 billion. Gross margins were 56% for AMD on a non-GAAP basis and 75% for Nvidia.
The article says AMD’s upside depends on gaining market share, citing EPYC server CPU gains, scaling Instinct deployments and Anthropic’s agreement to deploy up to 2 gigawatts of MI450-series systems. The first gigawatt is expected to begin deployment in the first half of 2027. It also notes competition from hyperscalers’ custom chips, while Nvidia retains CUDA, a broader full-stack platform and higher margins.
