According to NVDA PE Ratio data by YCharts, at first glance, AMD’s stock appears to be more costly compared to Nvidia’s, which is indeed the case. Nevertheless, both companies are experiencing robust growth, and AMD’s profitability outlook is anticipated to strengthen over the course of 2025. Hence, utilizing a forward P/E ratio is a prudent approach in this scenario.
Referring to the NVDA PE Ratio (Forward) Chart and data by YCharts, from this vantage point, it can be inferred that AMD is priced more attractively than Nvidia. Nonetheless, the variance in these valuation metrics is primarily influenced by the disparity in growth rates between the two companies. With Nvidia projected to achieve a revenue growth rate of 52% in FY 2026 (ending January 2026) and AMD expected to grow at a 24% rate, the distinction seems rational.
Nvidia is exhibiting swifter growth and commanding a leading position in the most pivotal computing sector presently. While AMD remains a solid company, the argument for choosing Nvidia over AMD appears compelling. Typically, top-tier stocks tend to outperform their counterparts significantly, especially when commencing from a similar valuation standpoint.
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