1. Nvidia vs AMD: Market Share
Nvidia (NASDAQ: NVDA) currently dominates the AI GPU market with a market share around 85% compared to AMD (NASDAQ: AMD) at 7%, with AMD having surrendered about 10% of their total market share to Nvidia over the past 10 years. This massive command by Nvidia was largely thanks to their early development of parallel computing, which has seen a lot of their competition playing a game of catch up over the past few years as demand for AI GPU’s surges.
And this is primarily where the biggest differences in these companies lie, because we are ultimately attempting to compare a $5T company like NVDA to AMD’s $824B. However, they have enough similarities that we can attempt to pick the better risk to reward proposition.
2. Nvidia vs AMD: Growth
In terms of revenue,NVDA is anticipating 117% year-over-year data center revenue growth in Q2 2027 which is just slightly above AMD’s 100% forecasted year-over-year growth for that time. NVDA’s 63% net profit margin has also been growing significantly over the past few years – and even though AMD’s has also been growing quite a bit, theirs is sitting down around the 15% mark.
Another metric we can look at is order backlogs, of which Nvidia has around $500B worth right now; whereas AMD’s is almost 10X less at around $51B. That said, we are seeing lots of momentum around each companies earnings revisions given the recent surge in GPU demand, with each company having received a vast amount of upwards revisions recently. This means that analysts are expecting order books to continue to grow and push up expected earnings, which is typically followed by expanding valuations and higher share prices.
In terms of raw growth in revenue and profit margin, Nvidia is clear winner.
3. Nvidia vs AMD: Valuation
NVDA is currently trading at an earnings multiple of 27, which given its impressive growth forecasts means it has a PEG ratio around 0.35. AMD on the other hand is trading at a 143 PE, which is a PEG of around 1.17 when we factor in earnings growth. By this metric, NVDA is the clear winner, particularly when we compare that to the S&P’s PEG ratio of 2.09.
When it comes to both valuation and growth, NVDA does have the more attractive proposition right now.
4. Nvidia vs AMD: Biggest Risks
At 16%, Nvidia has a slightly projected higher customer concentration risk than AMD’s which is around 10%. That said, even a small difference of about 6% is enough to distinguish Nvidia’s concentration risk as moderate.
The biggest risks we see are actually applicable to both companies, which are each facing increasing competition from the major tech companies who are actively looking to reduce their dependency on chipmakers.
Another huge risk that applies to each is the possibility that the data centre expansion could start to lose steam if AI adoption fails to meet its optimistic forecasts.
5. NVDA vs AMD: Which Stock Should You Buy for 2027?
While AMD does have the opportunity to capture additional market share back from Nvidia, the long term trend has simply not been in their favor given Nvidia’s head start in the GPU integration space. NVDA has the better growth prospects, bigger order backlog, better valuation, and overall better growth potential. So while we have both stocks currently rated a Strong Buy, we would put NVDA slightly ahead over AMD for 2027.
