Analysts note widening valuation gap between Nvidia and AMD
While AMD's share price has surged in 2026, Nvidia's stock has risen more modestly, leading to a significant divergence in market valuations despite similar business sectors.
Nvidia (NVDA) and Advanced Micro Devices (AMD) continue to compete in the GPU market for artificial-intelligence applications, but their stock valuations have begun to diverge sharply. AMD's share price has nearly tripled in 2026, lifting its market capitalisation to roughly $1 trillion, whereas Nvidia's stock has risen about 23 % over the same period.
The disparity reflects differing financial metrics. In its most recent quarter, Nvidia reported revenue growth of 106 % and a projected gross margin of 62 %, compared with AMD's reported gross margin of 50.37 % and a revenue growth outlook of about 75 % for the next year. Wall Street analysts expect Nvidia's revenue to reach $692 billion, while AMD is projected to generate $89 billion.
Despite AMD's higher expected growth rate, analysts note that the two companies' performance metrics remain close, suggesting that the current pricing of AMD's shares may be elevated relative to Nvidia's. Investors are advised to consider whether AMD's recent gains justify its valuation or if Nvidia's stock offers a more attractive risk-adjusted opportunity.