By Keithen Drury, The Motley Fool
Publication Date: 2026-10-27 15:35:00
Advanced Micro Devices (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA) are two of the biggest names in the artificial intelligence (AI) chip market. Their graphics processing units (GPUs) are the most popular options, and each is growing rapidly. However, from an investment standpoint, they are fundamentally different, especially when price tags are considered.
Nvidia is far cheaper than AMD, and this is something that investors can’t ignore. I think that makes Nvidia the superior buy, but is there more to this picture? Let’s take a look.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Nvidia is defying the law of large numbers
Nvidia and AMD both make GPUs, which are general purpose computing units that can excel in just about any situation. This makes them the workhorse of the AI computing landscape, even as other custom AI alternatives grow more popular. Those custom chips are only meant to run one type of workload and will never fully replace GPUs.
In the early days of the AI arms race, Nvidia’s products were far superior, which allowed it to capture an early lead. While AMD has improved its game, Nvidia’s early lead has been tough to overcome. However, the law of large…
