Nvidia vs. AMD: Which Business Is More Exposed to a Data-Center Slowdown?

NVIDIA Corporation (NASDAQ:NVDA) depends far more heavily on data centers than Advanced Micro Devices, Inc. (NASDAQ:AMD). That makes AMD more diversified by reported sales, although diversification alone cannot establish which stock is safer. The two AI stocks made it to our list of Best AI Infrastructure Stocks to Buy for the Long Term, but their revenue mixes offer different exposure to a spending slowdown.

A revenue shock lands differently

Nvidia reported $89 billion of data-center sales against $96.221 billion of total revenue for the quarter ended July 26. AMD reported $6.7 billion against $11.536 billion for its quarter ended June 27. Data centers therefore supplied about 92.5% and 58.1% of sales, respectively. These reporting periods differ, and AMD’s category includes EPYC server processors alongside Instinct accelerators; it is not an AI-only revenue measure.

Cut each reported data-center business by 10% and hold everything else constant. Nvidia’s total revenue falls about 9.25%, versus 5.8% for AMD. At a 20% segment decline, the mechanical reductions become 18.5% and 11.6%. This tests revenue concentration.

AMD’s other businesses are not guaranteed offsets. Its gaming revenue fell 31% year over year in the June quarter, while client revenue rose 23% and embedded revenue rose 19%. A broad technology downturn could hit several markets…