Nvidia vs AMD: Who’s Winning the AI Chip Race?

TLDR

• Nvidia posted $215.9 billion in revenue for fiscal 2026, up 65% year over year
• Nvidia’s Data Center revenue hit $193.7 billion for the full year
• AMD generated $34.6 billion in full-year 2025 revenue, with Data Center up 32% to $16.6 billion
• Nvidia’s Data Center revenue is more than 11 times AMD’s Data Center revenue
• AMD took $440 million in charges tied to U.S. export controls on its MI308 GPU products

Nvidia and AMD are both central to the artificial intelligence chip story, but the numbers show two very different businesses at very different scales.

Nvidia reported $215.9 billion in revenue for fiscal 2026, a 65% increase from the year before. Its gross margin came in at 71.1%. The company’s fourth quarter alone brought in $68.1 billion in revenue, with Data Center revenue of $62.3 billion in that single quarter.

NVIDIA Corporation, NVDA

For the full year, Nvidia’s Data Center business generated $193.7 billion. That segment is now the core of the company, and it is tied almost entirely to AI infrastructure demand from large cloud and technology companies.

Nvidia sells more than chips. It sells the full stack: accelerators, networking hardware, systems, and a software platform that customers build their AI workloads around. That combination makes it harder for customers to switch to a competitor.

The main risk for Nvidia is concentration. With so much of its business tied to a single spending cycle from large data centers, any slowdown in that spending could have a large effect on results.

AMD also reported strong full-year 2025 results. Revenue came in at $34.6 billion. Its Data Center segment brought in $16.6 billion for the year, up 32% from 2024. That growth was driven by its EPYC server processors and its Instinct AI accelerator products.

AMD’s Challenge

AMD’s fourth quarter showed a 54% gross margin, $1.8 billion in operating income, and $1.5 billion in net income. Those are solid numbers, but the scale gap with Nvidia remains wide.

Advanced Micro Devices, Inc., AMD

Nvidia’s annual Data Center revenue is more than 11 times AMD’s. That gap shows how early AMD still is in building out its AI infrastructure business.

AMD does not need to overtake Nvidia to be a worthwhile investment. Even taking a small share of the server and accelerator market can move its numbers in a meaningful way.

But AMD does face real headwinds. In fiscal 2025, it recorded around $440 million in charges related to U.S. export controls on its MI308 data-center GPU. That points to policy risk alongside the competitive challenge of taking share from Nvidia.

What Analysts Think

Wall Street is positive on both companies, but more so on Nvidia. According to MarketBeat, 54 analysts cover Nvidia with a Buy consensus, made up of 48 buys, 4 strong buys, and 2 holds. The average 12-month price target is $275.25.

AMD has coverage from 40 analysts with a Moderate Buy consensus: 1 strong buy, 31 buys, and 8 holds. Its average price target is $296.44.

The stronger consensus for Nvidia reflects its dominant market position and higher margins. The more cautious tone on AMD reflects questions about valuation and how quickly it can close the gap.

AMD’s average price target of $296.44 is currently higher than Nvidia’s $275.25, which suggests analysts see more price upside from AMD’s current level, even if the business fundamentals favor Nvidia.

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