By Adria Cimino
Publication Date: 2026-02-07 16:15:00
Nvidia and AMD have delivered significant growth during this AI boom.
Many players are participating in the high-growth field of artificial intelligence (AI). But two in particular stand out as they make key tools critical to the development and functioning of AI. I’m talking about chip designers Nvidia (NVDA +8.01%) and Advanced Micro Devices (AMD +8.32%).
Nvidia is the chip leader, offering the world’s most powerful graphics processing units (GPUs), and this has resulted in incredible growth over the past few years. AMD has proven it can compete with this market leader as it’s launched chips rivaling those of Nvidia and has been announcing soaring demand and revenue. And investors can count on both of these companies for a clear picture of the current and, potentially, future AI market.
AMD was the first to report quarterly earnings during the current earnings season, and the company announced record revenue for the quarter and the full year, as well as strong profitability. Chief Lisa Su even said that, based on the current situation, AMD expects “significant” sales and revenue growth this year.
In spite of these results, though, AMD stock sank 17% in the trading session following the report. Is this stock performance, following a strong earnings report, a warning for Nvidia shareholders ahead of the market giant’s Feb. 25 earnings report? Let’s find out.
Image source: Getty Images.
AMD’s soaring earnings
So, first, let’s consider AMD’s report. As mentioned,…
