Nvidia vs AMD: Which Is the Better Long-Term Stock Pick?

TLDR

• Nvidia posted $215.9 billion in revenue for fiscal 2026, up 65% year over year
• Nvidia’s Data Center segment alone brought in $193.7 billion — about 90% of total revenue
• AMD reported $34.6 billion in full-year 2025 revenue, with a record $16.6 billion from Data Centers
• Nvidia’s data center revenue is more than eleven times larger than AMD’s entire data center business
• Both companies face pressure from US export controls restricting chip sales to China

Nvidia and AMD are the two biggest names in AI chips. But their 2025 and 2026 financial results show just how different their positions are right now.

Nvidia’s fiscal 2026 revenue came in at $215.9 billion, a 65% jump from the year before. Net income reached $120.1 billion. Gross margin was 71.1%.

NVIDIA Corporation, NVDA

The engine behind those numbers was the Data Center segment. It brought in $193.7 billion on its own. That means roughly 90 cents of every dollar Nvidia earns now comes from AI infrastructure.

Nvidia sells GPUs, networking hardware, and software tools that companies use to build large AI systems. That software layer matters. It makes it harder for customers to switch to a rival chip, even one with comparable performance.

AMD’s Data Center Growth Is Real, But the Gap Is Huge

AMD posted $34.6 billion in total revenue for 2025. Net income was around $4.3 billion, with a gross margin of 50%. Those are solid results.

Advanced Micro Devices, Inc., AMD

AMD’s Data Center segment hit a record $16.6 billion, up 32% year over year. EPYC server processors and Instinct GPUs drove that growth, gaining traction with enterprise customers.

But Nvidia’s data center revenue alone is more than eleven times AMD’s total data center sales. That is a wide gap.

AMD also has more spread across its business. It brought in $14.6 billion from Client and Gaming, and $3.5 billion from Embedded in 2025. That diversification offers some cushion if one market slows.

Nvidia, by contrast, is now almost entirely an AI infrastructure company. That focus has paid off in profits, but it also means any slowdown in data center spending hits Nvidia harder.

Export Controls Are a Risk for Both

US export restrictions have become a live issue for both companies.

Nvidia said it is not counting on data center chip revenue from China in its fiscal first-quarter 2027 guidance. That China-related revenue gap is now a factor investors are watching closely.

AMD felt similar pressure. Restrictions on its MI308 data center GPUs affected results during 2025. The same geopolitical forces hitting Nvidia are also hitting AMD.

AMD’s path forward is about growing its share of the AI accelerator market over time. It does not need to overtake Nvidia — it just needs to keep gaining ground.

Nvidia’s most recent quarterly guidance excludes China data center revenue, keeping that uncertainty in focus for investors heading into the next reporting period.

Final Thoughts

Nvidia is the clear leader in AI chips right now. AMD is growing, but the data center gap is still very wide. Both stocks carry real risk from export controls heading into the rest of 2026.

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