Keithen Drury, The Motley Fool Fri, November 13, 2026 at 4:43 PM EST 5 min read NVDA -2.52% AMD -10.05% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Nvidia (NASDAQ:NVDA) shareholders have had a rough few days. After a week in which news broke that CEO and co-founder Jensen Huang had engaged in an extramarital affair with a woman who is accused of being a Chinese spy, and another with an Nvidia executive, on Thursday morning, he resigned.
The exit of the man who has been the face of the company for decades has investors worried about its future. AMD (NASDAQ:AMD) shareholders aren't in the same boat, and the chipmaker is enjoying surging data center sales.
Missed AI's "Act 1"? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
However, the question remains: Which stock is the better buy? It's a hard question to answer, because at face value, Nvidia is doing far better than AMD. But AMD doesn't have other questions surrounding the state of its business.
What matters is what you value most as an investor, as Nvidia is likely to be a tumultuous stock to own over the next few months.
Before comparing Nvidia and AMD stocks, investors must answer a different question: How capable will Nvidia be without Huang in the CEO role? If you're of the view that the company's future really rests on the caliber of the person in the top job, then Nvidia's investment thesis can't be properly analyzed until his permanent successor is picked. For now, respected CFO Colette Kress occupies the role on an interim basis.
If it doesn't matter to you who is leading Nvidia, then you're free to proceed to the next point.
Nvidia and AMD are both computing unit designers, although their businesses look a bit different. AMD's product lineup is a lot broader than Nvidia's, and so is its customer base. It has sizable businesses in the consumer electronics world as well as in embedded processors and data centers. However, almost all investors care about is the data center business, as that's what is growing rapidly right now.
During Q3, AMD's data center revenue rose 97% year over year to $8.5 billion. That's a strong result, and investors are excited. However, because AMD also has fairly large exposure to other segments, its overall growth rate was 45%, bringing its top line to $13.4 billion. The problem is it isn't anywhere close to Nvidia's growth and size.
Nvidia reports its fiscal 2027 Q3 results on Nov. 17. But until we get that update about the recent state of the business, the best we can do is to use its fiscal Q2 results. In that period, its data center sales rose 117% year over year to $89 billion. Because Nvidia's data center business makes up a far larger chunk of its total, Nvidia's overall revenue growth rate was 106% to $96.2 billion.
Nothing that has transpired over the past week will affect what Nvidia reports in Q3, and I'd expect another quarter of outperforming AMD based on historical trends. Furthermore, Nvidia has already told investors to expect 70% revenue growth in its fiscal 2028. Management is comfortable giving that guidance because Nvidia's business is practically locked in, with AI hyperscalers ordering its processors far in advance of when they'll be ready to install them in data centers.
I think this supports the premise that Nvidia can keep succeeding without Huang as CEO, because it's already got a lot of future growth on the books due to how strong a business it has built.
So, from a growth standpoint, Nvidia is still the better pick. And after this month's sell-off, the stock is even cheaper.
The best way to weigh the value of these two stocks is to look at their expected earnings for next year. By that metric, AMD is about 3 times more expensive than Nvidia.
That seems like a huge premium to pay for AMD, and the reality is that regardless of who is running Nvidia, a pricing mismatch of that magnitude is too great to ignore. Nvidia's stock could triple from this point without looking too expensive, and even a double would leave the stock looking cheap compared to its growth rate.
I think Nvidia is the far better stock to buy here, mainly due to how cheap the stock is. Nvidia's business is strong, and its board should find a talented new leader to take it over.
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $338,083!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,021,163!*
Now, it's worth noting Stock Advisor's total average return is 830% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of November 13, 2026.
Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.
Better Chip Stock: Nvidia vs. AMD was originally published by The Motley Fool
