Advanced Micro Devices IncAMD
Mentioned
Impact on stocks 3
Artificial Intelligence
Nvidia emerges as the more attractive buy compared to AMD following the semiconductor sell-off, driven by faster growth, higher margins, and a lower valuation. Nvidia's fiscal first-quarter 2027 revenue surged 85% year over year to $81.6 billion, with data center revenue up 92% to $75.2 billion, and it guided for about $91 billion in the next quarter. Its adjusted gross margin stood at 75%, far above AMD's 55%, while Nvidia trades at about 31 times earnings versus AMD's roughly 170 times. AMD posted a 38% revenue increase to $10.3 billion and 57% data center growth, but its growth rate and margins lag significantly behind Nvidia's.
