By Keithen Drury
Publication Date: 2026-10-09 15:17:00
Nvidia (NVDA -0.39%) and Advanced Micro Devices (AMD -1.59%) are two of the biggest names in AI computing. While Nvidia holds a larger market share and was the first to dominate the AI computing space, AMD has emerged as a viable competitor in recent months. In 2026, AMD’s stock has outperformed Nvidia’s, rising about 200% compared to Nvidia’s 30% rise. But the past is in the past. Which stock has more upside in the future?
Let’s take a look at what’s going on with these two and see which one makes the most sense for your investment dollars.
Image source: The Motley Fool.
AMD has a premium valuation to Nvidia
Let’s look at valuation. When a stock triples in a year, it has a tendency to become overvalued, as a ton of future growth expectations are pulled into it. That’s exactly what has happened with AMD, as it has gotten pretty pricey.
NVDA PE Ratio (Forward) data by YCharts. PE = price-to-earnings.
AMD’s forward price-to-earnings ratio has taken off over the past six months, with another rally in recent weeks. This rally was triggered by AMD announcing a 10% price hike in mid-September. However, AMD shares are more than triple the price tag of Nvidia shares, and that is the biggest red flag for it right now.
Essentially, a single Nvidia share represents over three times as much of the company as an AMD share does. This is an issue, as Nvidia is still growing faster than AMD is.
AMD still doesn’t compare to Nvidia
With how well AMD has done in 2026, you’d think it…
