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Nvidia beats AMD: $215.9 billion revenue seals the pick

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Nvidia beats AMD: $215.9 billion revenue seals the pick

3 Key Points

  1. What happened

    The Motley Fool compares AMD and Nvidia and concludes Nvidia is the better buy, after Nvidia's fiscal 2025 revenue hit approximately $215.9 billion, up 65.5% year over year.

  2. Why it matters

    AMD grew revenue roughly 34.3% to nearly $34.6 billion for the fiscal year ended Dec. 27, 2025, and lifted its net margin to about 12.5% from 6.4%, yet Nvidia's scale gap widened.

  3. What to watch

    The call hinges on whether Nvidia's data center demand keeps accelerating as Amazon, Microsoft, and Alphabet build their own AI chips in-house. Watch Nvidia's Forward P/E of 24.6x versus AMD's 58.3x.

WHO IT HITSRetail investors weighing AI chip exposure face a choice between Nvidia's larger scale and AMD's cheaper forward valuation; the writer frames AMD as a reasonable pick for those wanting a lower price point and Nvidia as the stronger long-term foundation.

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Context & Analysis

The comparison rests on two very different businesses. AMD designs high-performance computing products for data centers and gaming consoles, and its AI presence is growing through an MI450 GPU deal with OpenAI and chips for Microsoft. Nvidia, by contrast, provides accelerated computing platforms used by major cloud service providers and AI model developers, and also has an automotive arm through its DRIVE platform.

The financial gap is stark. AMD's fiscal year ended Dec. 27, 2025 brought nearly $34.6 billion in revenue, roughly 34.3% growth, with net income of about $4.3 billion and a net margin near 12.5%. Nvidia's fiscal year ended Jan. 25, 2026 brought approximately $215.9 billion in revenue, up 65.5%, with net income of roughly $120.1 billion and a net margin close to 55.6%.

Both face regulatory and competitive pressures. AMD contends with Intel and Nvidia, relies on TSMC for manufacturing, and has absorbed inventory charges tied to U.S. export controls on advanced chips to China, plus ongoing securities litigation. Nvidia is also exposed to tightening export controls that have restricted its China data center sales, and faces in-house AI chip efforts from Amazon, Microsoft, and Alphabet, along with antitrust scrutiny. The writer's call appears to hinge on whether Nvidia's data center demand keeps accelerating rather than plateauing, and whether AMD's cheaper price point and improving margins can close a scale gap the writer describes as enormous and widening.

FAQ
How much did AMD and Nvidia earn in their latest fiscal years?
AMD's revenue was nearly $34.6 billion for the fiscal year ended Dec. 27, 2025, with net income of roughly $4.3 billion. Nvidia's revenue was approximately $215.9 billion for the fiscal year ended Jan. 25, 2026, with net income of roughly $120.1 billion.
Which stock is cheaper based on forward earnings?
Nvidia trades at a Forward P/E of 24.6x, while AMD trades at 58.3x, making Nvidia appear significantly cheaper on that metric. However, Nvidia's P/S ratio of 25.6x is slightly higher than AMD's 20.9x.
What AI deals does AMD have?
AMD has an MI450 GPU deal with OpenAI and supplies chips for Microsoft. The article also notes an Anthropic partnership that adds long-term credibility.
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