AMD (AMD) has been one of the top-performing stocks in the S&P 500 ($SPX). Shares have surged more than 150% this year, driven by robust financial results. Notably, strong artificial intelligence (AI)-led demand for the company’s CPUs and GPUs — supported by a broad customer base and sustained AI infrastructure investments — has been a key catalyst behind the rally.
While AMD stock has gained significantly in value, its growth story is far from over. As AI development shifts from training large language models (LLMs) to inference and next-generation agentic AI applications, demand for high-performance computing is expected to remain strong. That trend should benefit not only AMD’s Instinct GPUs but also its EPYC server processors, positioning the company to capture growth across multiple segments of the AI infrastructure market.
More News from Barchart
However, although AMD is still a solid long-term AI investment, Nvidia (NVDA) offers a more compelling valuation relative to its growth prospects. That makes NVDA stock an attractive alternative for investors seeking a better value play.
Solid Growth, Low Valuation Make Nvidia Stock a Buy
Despite concerns over margin pressure and increasing competition from custom AI chips, Nvidia continues to strengthen its leadership in the AI infrastructure space. It is delivering exceptional revenue growth, expanding into new opportunities, and trading at a valuation that remains attractive relative to its long-term earnings potential and peers.
The AI investment boom is still in its early stages. Hyperscalers, AI model developers, cloud providers, and governments are all increasing spending on AI infrastructure, and Nvidia remains the biggest beneficiary. Its leadership in GPUs, networking hardware, and AI software has helped it capture the largest share of this rapidly growing market.
Nvidia’s latest results highlight that strength. The company generated $81.6 billion in revenue, up 85% year-over-year (YOY), with $13.5 billion in sequential revenue growth. That is more than the total quarterly sales of many major competitors.
Data Center revenue hit $75.2 billion, increasing 92% YOY and 21% sequentially, driven largely by strong adoption of the company’s Blackwell architecture. Within the segment, computing revenue reached $60 billion and networking revenue climbed to $15 billion, recording significant YOY growth.
