After AMD’s 24% Climb in a Day, NVDA Looks Like the Stronger Long-Term Play

-15.34%
Downside
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Market
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Trefis
AMD: Advanced Micro Devices logo
AMD
Advanced Micro Devices

NVIDIA (NVDA) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Advanced Micro Devices (AMD), suggesting you may be better off investing in NVDA

  • NVDA’s quarterly revenue growth was 55.6%, vs. AMD’s 31.7%.
  • In addition, its Last 12 Months revenue growth came in at 71.6%, ahead of AMD’s 27.2%.
  • NVDA leads on profitability over both periods – LTM margin of 58.1% and 3-year average of 51.0%.

Single stock can be risky, but there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Let us ask you this: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed – the S&P 500, Nasdaq, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.

AMD produces x86 microprocessors, GPUs, chipsets, and development services across computing, graphics, enterprise, embedded, and semi-custom segments. NVDA provides graphics, compute, and networking solutions for gaming, visualization, datacenters, and automotive markets, with a strategic collaboration with Kroger Co.

Valuation & Performance Overview

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  5. How Advanced Micro Devices Stock Gained 80%
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  AMD NVDA Preferred
     
Valuation      
P/EBIT Ratio 134.8 47.1 NVDA
     
Revenue Growth      
Last Quarter 31.7% 55.6% NVDA
Last 12 Months 27.2% 71.6% NVDA
Last 3 Year Average 11.7% 92.0% NVDA
     
Operating Margins      
Last 12 Months 8.3% 58.1% NVDA
Last 3 Year Average 3.4% 51.0% NVDA
     
Momentum      
Last 3 Year Return 200.2% 1314.8% AMD

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: AMD Revenue Comparison | NVDA Revenue Comparison
See more margin details: AMD Operating Income Comparison | NVDA Operating Income Comparison
 
But do these numbers tell the full story? Read Buy or Sell NVDA Stock to see if NVIDIA’s edge holds up under the hood or if Advanced Micro Devices still has cards to play (see Buy or Sell AMD Stock).

Historical Market Performance

  2020 2021 2022 2023 2024 2025 Total [1] Avg Best
Returns
AMD Return 100% 57% -55% 128% -18% 69% 259%  
NVDA Return 122% 125% -50% 239% 171% 38% 3104% <===
S&P 500 Return 16% 27% -19% 24% 23% 15% 108%  
Monthly Win Rates [3]
AMD Win Rate 50% 50% 33% 58% 42% 44%   46%  
NVDA Win Rate 75% 58% 42% 75% 75% 67%   65% <===
S&P 500 Win Rate 58% 75% 42% 67% 75% 67%   64%  
Max Drawdowns [4]
AMD Max Drawdown -16% -20% -61% -4% -19% -35%   -26%  
NVDA Max Drawdown -16% -11% -62% -2% -4% -30%   -21%  
S&P 500 Max Drawdown -31% -1% -25% -1% -2% -15%   -12% <===

[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 10/6/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

 
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read
NVDA Dip Buyer Analyses and AMD Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.