AMD hits $1 trillion market cap; Nvidia offers better value, analyst says
AMD joined Nvidia, Broadcom, and other semiconductor giants in the $1 trillion market cap club on September 25, 2026. The stock has surged 195% this year, significantly outpacing Nvidia’s 20% gain, driven by investor enthusiasm for its dual CPU and GPU product mix and recent hyperscaler deals. However, an analysis by The Motley Fool suggests AMD is now "priced to perfection," trading at a 162x…
Key points
- AMD reached a $1 trillion market cap on September 25, 2026, after a 195% rally this year.
- Nvidia’s last quarter revenue was $96 billion, with data center sales at $89 billion, far exceeding AMD’s $11.5 billion.
- Nvidia trades at a 28x trailing P/E, while AMD trades at 162x, suggesting Nvidia is undervalued relative to growth.
While AMD reported $11.5 billion in quarterly revenue, Nvidia’s last quarter saw $96 billion in sales, with data center revenue alone hitting $89 billion. Nvidia’s net income over the past 12 months was approximately $193 billion, compared to AMD’s $6.5 billion. The article argues that Nvidia’s valuation is more attractive, trading at 28 times trailing earnings, its lowest forward P/E in a decade.
The analysis highlights Nvidia’s expanding CPU business, with the Vera Rubin architecture forecast to reach $20 billion in sales next quarter. Management expects CPU revenue to more than double by fiscal 2028, positioning Nvidia as a leading server CPU supplier. The author concludes that while AMD is a solid company, the easy gains have been made, and Nvidia offers more room for growth as AI infrastructure buildouts continue.
The story so far
3 episodes →- AMD hits $1 trillion market cap; Nvidia offers better value, analyst saysthis story
Nvidia vs. AMD: Which AI Chip Stock Has More Room to Run After AMD's Surge Past $1 Trillion?
aol.com · 29 September 2026
Loading the full article…
This text was published by aol.com and written by AOL. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.
More in Business & Funding
All →- Meta launches enterprise AI platform, hires MongoDB CEO Chirantan Desai to lead it · 11 src
- Anthropic reportedly values itself at $2 trillion in leaked IPO prospectus · 26 src
- Meta's Muse could trigger bank run · 1 src
- OpenAI restores $200 Pro plan but halves API credits per dollar · 4 src
- OpenAI and Anthropic costs drive firms toward open-weight AI, report says · 1 src
Comments
via GitHub Discussions