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AMD vs. NVIDIA: Which Chip Stock Holds the Edge for Future Growth in 2025?

  • Writer: BC
    BC
  • 5 days ago
  • 2 min read

Summary Comparison: AMD vs NVIDIA


Current Price & Forecast

  • AMD is trading around $172.28. Analysts' 12-month average price targets range from roughly $182 to $183, offering modest upside of ~4–6%.

  • NVIDIA is at about $182.06. Analyst targets average approximately $187.57, implying a smaller near-term upside (~2–3%).


Projected Growth Outlook

  • AMD is expected to deliver stronger growth: revenue growth of ~15.3% and EPS growth of ~31.1% annually; return on equity projected at 16.3% over three years. Wall Street predicts EPS growth of ~53% in 2025 and ~39% in 2026, potentially leading the sector.

  • NVIDIA is forecasted to grow earnings and revenue at ~20–21% per year, with EPS growth around 20.6% annually and return on equity over 51% in three years



Strategic Positioning & Risks

  • NVIDIA remains the AI chip market leader, holding 92% of discrete GPU market share and over 80% of AI model training/deployment share. It reached a $4 trillion market cap in 2025, driven by demand for AI infrastructure. Recent developments include renewed access to China’s market via export deals (H20 chips) despite a 15% revenue-sharing requirement.


  • AMD is making strategic gains, expanding in AI and server ecosystems, recently announcing strong Q3 revenue outlook (~$8.7B), supported by AI chips like Instinct MI350 and MI355. However, export restrictions (e.g., MI308 to China) have negatively impacted margins and investor sentiment.


Investment Outlook

Company

Near-Term Upside

Long-Term Growth Prospects

Strengths

Risks

AMD

Moderate (~5%)

High — strong EPS growth forecasts; AI momentum

Rising AI relevance, competitive pricing, product roadmap (MI350/MI400)

Export restrictions, unclear competitiveness vs Nvidia in top-tier AI

NVIDIA

Modest (~3%)

Solid — consistent high growth and dominant AI leadership

Market dominance, brand, scale, AI moat

High valuation, geopolitical/legislative risks, margin pressure from revenue-sharing deal

Conclusion: For aggressive investors seeking high-growth potential, AMD may offer a more compelling opportunity—its strong EPS momentum, expanding AI presence, and relative runway could yield outsized returns if it executes well. NVIDIA, on the other hand, remains a powerhouse with unmatched scale and stability; it's arguably a safer, long-term AI infrastructure play, but offers smaller short-term upside due to its already elevated valuation.




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