The AI chip race now has two sets of blockbuster earnings on the table. Within three weeks, NVIDIA and AMD both reported record quarters built on the same engine: demand for data center chips that train and run artificial intelligence.
For investors, that raises an obvious question. If you want exposure to the AI hardware boom, which stock is the better buy — the $5 trillion incumbent or the smaller, faster-growing challenger? Here is how the two companies compare after their latest results.
Nvidia: record revenue, but the stock keeps slipping
Nvidia (NASDAQ: NVDA) remains the dominant force in AI computing. The company reported fiscal first-quarter revenue of $81.6 billion on May 20, 2026, up 85% from a year earlier. Data center revenue alone reached a record $75.2 billion, up 92%.
“The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” CEO Jensen Huang said in the company’s earnings release.
Nvidia also raised its quarterly dividend and authorized $80 billion in new share buybacks. A higher dividend and a buyback are both ways of returning cash to shareholders.
Yet NVDA shares fell roughly 2% the day after the report — the fourth straight time the stock has dropped following earnings. The reason is expectations: after a multi-year run, the stock trades at around 34 times earnings, and even a record quarter struggles to clear that bar. NVDA closed near $218 on May 22, 2026, leaving Nvidia worth about $5.4 trillion.
AMD: a smaller base, but fast percentage growth
AMD (NASDAQ: AMD) is the clear number two in AI accelerators — and it is growing quickly off a smaller base. The company reported first-quarter revenue of $10.3 billion on May 5, 2026, up 38% from a year earlier. Its data center segment hit a record $5.8 billion, up 57%.
“First quarter results reflect strong performance across all key financial metrics, with accelerating revenue growth, earnings expansion and record quarterly free cash flow,” said Jean Hu, AMD’s chief financial officer.
AMD’s momentum is increasingly tied to large customer commitments. The company confirmed that Meta plans to deploy up to 6 gigawatts of AMD Instinct GPUs, with the first wave powered by its upcoming MI450 chip. For the current quarter, AMD guided to revenue of about $11.2 billion — roughly 46% growth year over year.
Nvidia vs. AMD: the numbers side by side
| Metric | Nvidia (Q1 FY2027) | AMD (Q1 2026) |
|---|---|---|
| Quarterly revenue | $81.6 billion | $10.3 billion |
| Revenue growth (year over year) | +85% | +38% |
| Data center revenue | $75.2 billion | $5.8 billion |
| Non-GAAP gross margin | 75.0% | 55% |
| Non-GAAP earnings per share | $1.87 | $1.37 |
| Next-quarter revenue guidance | $91.0 billion | About $11.2 billion |
The contrast is clear. Nvidia is far larger, far more profitable per dollar of sales, and still growing faster in percentage terms. AMD is smaller and lower-margin, but it has a credible product roadmap and is winning marquee customers — which is exactly what the bull case for the stock depends on.
Which is the better buy?
There is no single answer, because the two stocks suit different investors.
- The case for Nvidia: It is the market leader with the widest software moat — its CUDA platform — and the fattest margins in the industry. Wall Street remains overwhelmingly positive: as of May 22, 2026, the analysts covering NVDA carried a consensus “Buy” rating. The main risks are valuation and any slowdown in AI spending.
- The case for AMD: It offers a faster-growth story for investors who believe the AI accelerator market is large enough to support a strong number two. AMD also carries a consensus “Buy” rating. The main risk is execution: its margins are thinner, and it has to keep winning customers away from an entrenched leader.
Both stocks rise and fall on the same question — whether cloud providers and AI companies keep spending heavily on data center hardware. Any sign that spending is slowing would hit both, and the higher-valuation names usually fall hardest.
What investors should watch
Before choosing a side, focus on three things in the months ahead:
- Data center demand — both companies’ next reports will show whether AI infrastructure spending is still accelerating.
- Margins — watch whether AMD can narrow any of the gap with Nvidia’s 75% gross margin.
- Customer wins — large multi-year commitments, like AMD’s Meta agreement, are the clearest signal of durable demand.
For a wider view of how chipmakers fit into an AI portfolio, see our rundown of 15 AI stocks Morgan Stanley recommends. As always, a single stock — however strong its latest earnings — should be sized to fit your overall portfolio and risk tolerance, not bought on a headline.
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