AMD vs. NVDA: Which AI Chip Giant Belongs in Your 10-Year Portfolio?

AMD reports strong recent results with accelerating growth in revenue and data center performance. Q1 FY2026 revenue reached $10.25B, up 38% year over year, with Data Center revenue of $5.78B, up 57%. Management guided Q2 revenue to about $11.2B, implying 46% growth. Free cash flow rose 253% to $2.566B and operating income increased 83%. Customer commitments include Meta’s planned 6 GW Instinct GPU deployment and OpenAI’s 6 GW of MI450. AMD stock has surged 97% year to date and 327% over the past year, while NVIDIA has risen 11% year to date. NVIDIA’s valuation is higher, with AMD trading at far larger P/E and P/FCF multiples and NVIDIA showing a lower earnings multiple based on FY2026 net income.

"AMD trades at a P/E of 158, a P/FCF of 102, and a free cash flow yield of just under 1%. That is a growth-stock multiple priced for perfection. NVIDIA, by contrast, generated $120.07B in net income on a $5.18T market cap in FY2026, which works out to a meaningfully cheaper earnings multiple than AMD on trailing profits. NVIDIA is the lower-multiple compounder here. There is no ambiguity."

"AMD's Q1 FY2026, reported May 5, 2026, delivered $10.25B in revenue, up 38% YoY, with Data Center revenue of $5.78B, up 57%. Management guided Q2 to roughly $11.2B, implying 46% growth: the rate of growth is accelerating. Free cash flow jumped 253% to $2.566B, and operating income rose 83%. The customer roster validates the inflection: Meta committed to a 6 GW Instinct GPU deployment, and OpenAI signed for 6 GW of MI450."

"Price action confirms the regime change. AMD is up 97% year-to-date and 327% over the past year. NVIDIA, the prior leader, is up just 11% YTD. Reddit captures the shift in real time: r/stocks now hosts threads like "I feel like I should start looking at AMD and MU for the second half of AI" and "Stop calling RAM 'cyclical' while treating Nvidia like a 'secular grower.'" AMD's current sentiment score sits at 77, peaking at 90 on April 24. The narrative has cracked open."

Read at 24/7 Wall St.