AMD trades at 97 times its projected 2026 earnings while Nvidia trades at just 21 times its projected fiscal 2027 earnings, raising questions about which valuation model is wrong. Nvidia, with a market cap of $4.71 trillion, has consistently beaten Wall Street estimates, most recently reporting first-quarter fiscal 2027 revenue of $81.6 billion, $2.5 billion above expectations. AMD, worth $854 billion, has also stayed slightly ahead of forecasts, with first-quarter 2026 revenue rising 38% to $10.25 billion, but its growth lags Nvidia's explosive pace. Analysts project Nvidia's revenue and EPS will each grow at compound annual growth rates of 46% through fiscal 2029, while AMD's revenue and EPS are expected to grow at 44% and 82%, respectively, through 2028. The author believes analysts are still underestimating Nvidia and overestimating AMD's growth potential, making Nvidia's stock even cheaper than its forward multiple suggests.
Advanced Micro Devices Inc
NVIDIA Corporation
Intel Corporation