Nvidia looks cheaper than AMD despite faster growth

AMD crossed $1 trillion in market value on September 21 after its stock climbed roughly 187% so far in 2026, but Nvidia remained much larger at about $5.45 trillion as of September 23. The valuation gap runs opposite to earnings multiples: AMD trades at about 55.6 times forward earnings, while Nvidia trades at 18.7 times.

AMD reported second quarter revenue of $11.5 billion, up 50% from a year earlier, with Data Center revenue more than doubling to $6.7 billion. Nvidia generated $96.2 billion in quarterly revenue, up 106%, while Data Center revenue rose 117% to $89.0 billion. Nvidia’s gross margin was 75%, compared with AMD’s 56%.

Nvidia’s Vera Rubin platform is already in production and is expected to account for roughly 20% of data center revenue in the fiscal third quarter, with supply covering about 70% of demand. AMD’s Helios rack is just beginning to ship, with management expecting a ramp in the fourth quarter and again in the first quarter of next year.

AMD’s growth case depends on large new customers, including Anthropic’s plan to deploy up to 2 gigawatts of MI450 systems through Helios. Nvidia also reported a hyperscaler cloud backlog above $2 trillion, while AMD’s trailing price to earnings ratio stands at 154 compared with Nvidia’s 29.