# AMD hits $1 trillion market cap; Nvidia offers better value, analyst says

Digest AI · Business & Funding · published 2026-09-29T07:35:00Z

Canonical: https://digestai.news/story/amd-hits-1-trillion-market-cap-nvidia-offers-better-value-analyst-says

## Summary

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 price-to-earnings ratio despite trailing Nvidia in both revenue and profit. 

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.

## 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.

## Why it matters

This analysis suggests a potential rotation in AI chip stocks from AMD to Nvidia, impacting investor strategies and highlighting Nvidia’s expanding CPU market share as a key growth driver.

## Sources

1. [Nvidia vs. AMD: Which AI Chip Stock Has More Room to Run After AMD's Surge Past $1 Trillion?](https://aol.com/articles/nvidia-vs-amd-ai-chip-143500000.html) (aol.com, 2026-09-29)

Part of the developing story: [Nvidia's Artificial Intelligence Chip Dominance](https://digestai.news/thread/nvidia-ceo-says-company-will-double-chip-sales-next-year) (3 stories)

## Cite

Digest AI, "AMD hits $1 trillion market cap; Nvidia offers better value, analyst says", 29 September 2026, https://digestai.news/story/amd-hits-1-trillion-market-cap-nvidia-offers-better-value-analyst-says

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