![\"Person](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/f7626068a56ffdde9a79823ea5abb686.jpeg\")
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The primary way both companies compete in the AI space is through their graphics processing units (GPUs)<\/a>, which are perfectly suited to process complex workloads like AI. Nvidia’s full stack outperforms AMD’s, so it was the clear choice at the start of the AI revolution.<\/p>\n However, AMD has improved its offerings as of late, and it may be enough of an improvement to warrant switching to some AMD equipment. Furthermore, AMD’s products are far cheaper than Nvidia’s, so when capital budgets get tight, AMD may see more of an adoption.<\/p>\n However, Nvidia is still king. During AMD’s Q4, its data center revenue rose 39% year over year. If Nvidia reports 39% data center revenue growth for Q4, the stock would crater alongside the rest of the stock market. Expectations are far higher for Nvidia because it has done far better.<\/p>\n While we don’t have Q4 results for Nvidia yet, we know that Q3’s data center growth rate was 66%. Companywide in Q3, Nvidia grew at a 62% pace. For Q4, Wall Street analysts expect 67% growth. This means data center revenue should likely increase around 70% year over year, far greater than the growth AMD is experiencing despite its much smaller size.<\/p>\n This gives the edge to Nvidia in this analysis, but what about valuation?<\/p>\n You’d think that AMD’s stock would be cheaper due to it being in second place and growing more slowly, but you’d be wrong. AMD trades for 30 times forward earnings, while Nvidia trades for a mere 23 times forward earnings.<\/p>\n That’s a decent price discrepancy, and I’m not sure of why you’d want to buy AMD stock over Nvidia’s when it’s growing slower and more expensive. As a result, I think Nvidia is a no-brainer pick as to which one will outperform in 2026<\/a>, and investors should position their portfolio accordingly.<\/p>\n Before you buy stock in Nvidia, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Nvidia wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $439,362!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,164,984!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 918% \u2014 a market-crushing outperformance compared to 196% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of February 10, 2026. <\/p>\n Keithen Drury<\/a> has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy<\/a>.<\/p>\n<\/a> NVDA PE Ratio (Forward)<\/a> data by YCharts<\/a> <\/p>\n