By Rich Duprey
Publication Date: 2026-04-26 11:45:00
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Nvidia (NVDA) trades at a 22-25x forward P/E with 25-35% expected growth (PEG of 0.7-1.0), while AMD (AMD) commands 35-45x earnings with 30-40% projected growth (PEG of 1.0-1.5), making Nvidia appear cheaper on a growth-adjusted basis despite AMD’s recent surge.
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Nvidia’s discount reflects investor certainty about its proven dominance in AI data center GPUs and superior margins, while AMD’s premium valuation prices in optionality from its earlier-stage AI business and potential for meaningful share gains.
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At first glance, it doesn’t make much sense. Nvidia (NASDAQ:NVDA) — the undisputed leader of the AI chip boom — trades at roughly half the forward earnings multiple of Advanced Micro Devices (NASDAQ:AMD), a smaller rival still fighting for share.
That gap might suggest the market expects a sharp slowdown from Nvidia, or a major acceleration from AMD. Their stock performance helps explain why investors are thinking this way — but also why that conclusion is too simplistic.
Since the AI boom took off in late 2022, Nvidia has dominated, delivering returns of more than 1,100% versus roughly 350% for AMD. That reflects Nvidia’s early lead, with GPUs already optimized for AI workloads, while AMD was slower to ramp.
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But the narrative shifted over the past year….
