By Keithen Drury
Publication Date: 2026-05-20 13:45:00
Advanced Micro Devices (AMD +7.35%) and Nvidia (NVDA +1.77%) are two stocks that are often compared. Each makes computing devices, although AMD’s product catalog is a lot larger. Both are also heavily involved in the artificial intelligence (AI) build-out, leading to massive growth rates.
However, there can be only one top buy. So which stock is the better buy between the two?
Image source: Getty Images.
AMD’s business is more diversified
AMD makes graphics processing units (GPUs) like Nvidia, but also makes central processing units (CPUs), embedded processors, and other data center components. In the first quarter of 2026, about 56% of revenue came from its data center division. That makes AMD a lot more diversified than Nvidia, which is basically a data center build-out boom-or-bust investment.
Today’s Change
(7.35%) $30.45
Current Price
$444.50
Key Data Points
Market Cap
$675B
Day’s Range
$426.75 – $448.72
52wk Range
$107.67 – $469.21
Volume
664K
Avg Vol
39M
Gross Margin
47.09%
In Nvidia’s latest quarter, over 90% of revenue came from its data center division. That’s an extreme concentration, and if the AI build-out were to suddenly cease, Nvidia’s business would collapse. While that sounds scary, the reality is that the data center build-out is ramping up and will be going on for several more years. Nvidia, being highly concentrated in this area, will have better growth rates than AMD.
However, being a more diversified business is usually a better thing over the long haul, so I’m…