By Harsh Chauhan
Publication Date: 2025-12-04 17:00:00
Key Points
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AMD stock delivered stronger returns than Nvidia in 2025, and the stock can still be bought at a cheaper valuation.
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AMD management forecasts an acceleration in its growth next year, potentially paving the way for more upside.
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Nvidia is likely to deliver a nice jump in its top line next year, but its valuation may weigh on the stock’s returns.
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Longtime rivals Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) saw their fortunes vary in the artificial intelligence (AI) chip market over the past three years.
Nvidia’s early move into this market with its data center graphics cards, which enabled OpenAI to train ChatGPT in 2022, paved the way for remarkable growth in its top and bottom lines. What’s worth noting is that Nvidia continues to reap the benefits of its first-mover advantage in the AI chip space, as evidenced by its latest quarterly results.
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AMD, however, was late to the AI scene. It lags behind Nvidia in this market despite trying to close in on its bigger rival for the past three years. This explains why AMD stock’s three-year gains of 183% pale in comparison to Nvidia’s 963% increase. But what’s worth noting is that AMD has outperformed Nvidia in 2025, clocking an 82% jump in its stock price as compared to Nvidia’s 34%…
