By Lyle Daly, The Motley Fool
Publication Date: 2026-03-24 21:21:00
No semiconductor company has been as successful as Nvidia (NASDAQ: NVDA) over the past three years or so, but recently, Advanced Micro Devices (NASDAQ: AMD) has been the better investment. AMD stock is trading up 88% over the last year, as of March 20. Nvidia trails it with a still-impressive return of 46%.
After the recent market turmoil, both of these semiconductor stocks are cheaper than they were at the start of the year. But which one is the better buy?
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Nvidia is still the winner in terms of sales growth, with $68.1 billion in revenue during the fourth quarter of its 2026 fiscal year, which ended Jan. 25, 2026. That was a 70% year-over-year increase. AMD’s revenue increased 34% to $10.3 billion in the fourth quarter of its 2025 fiscal year, which ended Dec. 27, 2025. Nvidia also has better gross margins at 75% compared to 54% for AMD, due to Nvidia’s dominance over the GPU market and its widely used CUDA software ecosystem.
That said, there are also reasons to be bullish about AMD. While Nvidia focuses more on GPUs, AMD has a growing share of the CPU market — up to 29.2% as of Q4 2025. It has announced strategic partnerships with OpenAI and Meta Platforms in the last six months, and it has a…
