On the available figures, Nvidia looks stronger on scale, reported gross margin and the dated forward-earnings comparison; AMD may appeal to investors who see room for its smaller data-center business to keep expanding. That is a conditional reading of company results and one valuation snapshot, not a prediction of returns or a personal buy recommendation. The companies’ latest reported quarters ended on different dates, and the valuation figures below are a third-party snapshot dated September 23, 2026.
How do the latest results compare?
Both companies reported rapid data-center growth, but Nvidia’s business is much larger. The quarters below are not identical periods: AMD’s quarter ended June 27, 2026, while Nvidia’s second quarter of fiscal 2027 ended July 26, 2026. Each growth rate is year over year against that company’s comparable quarter.
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| Measure | AMD | Nvidia |
|---|---|---|
| Latest reported quarter | Q2 2026, ended June 27, 2026; results announced August 4, 2026 | Q2 fiscal 2027, ended July 26, 2026; results announced August 26, 2026 |
| Total revenue | $11.5 billion, up 50% year over year | $96.2 billion, up 106% year over year |
| Data Center revenue | $6.7 billion, up 107% year over year | $89.0 billion, up 117% year over year |
| Gross margin | 54%, compared with 40% in the year-earlier quarter | 75.0% |
The figures come from the companies’ respective earnings releases. Nvidia’s reported revenue is roughly 8.4 times AMD’s for these different fiscal quarters; the ratio is a calculation from the reported $96.2 billion and $11.5 billion, not a company-published statistic. Nvidia’s Data Center revenue was about 92% of its total for the quarter, also calculated from reported figures. That concentration makes continued data-center demand especially important to Nvidia’s results.
What is driving each company’s growth?
AMD is expanding from a smaller base
AMD attributed its Q2 2026 Data Center growth to EPYC processors and Instinct MI350-series GPUs. Client and Gaming revenue was $3.8 billion, up 6% year over year, while Embedded revenue was $977 million, up 19%. The mix shows that AMD has businesses beyond data-center accelerators, although Data Center was its largest reported segment in the quarter.
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AMD’s Q2 filing also disclosed agreements with OpenAI and Meta under which each customer intended to deploy up to 6 gigawatts of AMD data-center GPUs, with initial deployments powered by MI450 products. These are announced intentions, not guaranteed deliveries or realized revenue. AMD disclosed warrants for each customer tied to purchase milestones and specified stock-price or performance conditions; as of June 27, 2026, no warrant tranches had vested or become exercisable.
Nvidia combines compute and networking at far greater scale
Nvidia reported $89.0 billion of Data Center revenue in its latest quarter, up 117% year over year. For fiscal 2026, Nvidia reported $215.9 billion of total revenue, up 65%, and 71.1% gross margin. Its annual filing showed Data Center compute revenue growth of 59% and Data Center networking revenue growth of 142% for that fiscal year. These annual results provide context for Nvidia’s scale and product breadth, but they should not be read as directly comparable with AMD’s fiscal 2025 results.
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What does the valuation comparison say?
Yahoo Finance displayed forward price-to-earnings ratios of 39.53 for AMD and 24.88 for Nvidia in a snapshot dated September 23, 2026. On that specific provider snapshot, AMD traded at the higher multiple of forecast earnings. Forward P/E uses estimated future earnings rather than reported earnings; both the share price and forecasts can change. These figures are not company guidance and are not a live October 2026 valuation.
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A lower forward P/E does not by itself mean a stock is undervalued or likely to outperform. Estimates can prove too optimistic or too conservative, and the ratio says nothing on its own about how much growth, risk or execution difficulty the market has already priced in. Avoid comparing nominal share prices as a shortcut: per-share prices depend on share count and corporate actions.
Why is AMD’s margin increase harder to interpret?
AMD’s gross margin rose to 54% in Q2 2026 from 40% a year earlier. Its filing attributed the increase partly to the absence of prior-year inventory and related charges connected to U.S. export controls on MI308 products, as well as favorable product mix. The comparison therefore includes a prior-year charge effect; the full 14-percentage-point increase should not be treated as a clean measure of recurring improvement in unit economics.
What are the main risks to each investment case?
AMD: converting product momentum into durable deployments
AMD’s growth case depends on executing across accelerators, systems, software and supply—not just announcing large customer plans. Its annual filing identifies competition, including Nvidia’s market position and proprietary software ecosystem; reliance on third-party manufacturing and suppliers; software compatibility; export regulations; and customer concentration as risks. Delays, weaker adoption or supply constraints could make reported growth difficult to sustain.
Nvidia: sustaining demand from a concentrated business
Nvidia’s scale and data-center momentum are strengths, but they also make expectations and concentration central considerations. The latest quarter’s Data Center revenue represented roughly 92% of total revenue, based on the company’s reported figures. Nvidia discloses competition, supply constraints, product transitions and export controls among its risks. Its Q1 fiscal 2027 outlook said it was not assuming any Data Center compute revenue from China, illustrating the relevance of export-policy and geographic uncertainty.
Which stock may fit which investor view?
- Nvidia’s case may look stronger to an investor prioritizing current business scale, the higher reported gross margin in the cited latest quarters, and the lower forward P/E in the September 23 snapshot. Those measures do not establish fair value or future returns.
- AMD’s case may be more compelling to an investor focused on expansion from a smaller base and the possibility that its newer data-center products and announced customer deployment plans translate into sustained business. The plans are not guaranteed sales, and AMD’s cited forward P/E was higher in the same dated snapshot.
Before choosing, assess revenue growth alongside the size of the base, compare valuation using the same provider and timestamp, examine the causes of margin changes, and weigh customer concentration, software and product execution, supply dependencies and export exposure. The available evidence points to Nvidia as the stronger case on scale and the dated valuation measure, while AMD’s case rests more heavily on successful execution of its growth opportunity. Neither conclusion predicts stock performance.
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