Nvidia or AMD? Best AI Chip Stock After Q4 Earnings, Meta Deal

American chip giants Nvidia NVDA -4.16% ▼ and Advanced Micro Devices AMD -1.70% ▼ both beat sales and earnings expectations in their fiscal fourth quarters. Moreover, both semiconductor companies have signed multiyear AI infrastructure deals with Meta Platforms META -1.34% ▼ , solidifying their positions in the booming AI market amid surging demand from hyperscalers like Meta, Microsoft MSFT -2.24% ▼ , and Google GOOGL +1.42% ▲ .

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Nvidia and AMD chips differ mainly in architecture, software ecosystems, and target strengths for gaming, AI, and data centers. Nvidia leads in high-end performance and AI dominance, while AMD focuses on value and capacity.

Based on TipRanks’ Stock Comparison Tool, analysts have assigned a “Strong Buy” consensus to NVDA, while they remain cautiously optimistic on AMD’s long-term prospects. Nonetheless, both stocks show impressive upside potential over the next twelve months of around, indicating strong share price appreciation ahead.

Nvidia Stock Forecast

Nvidia reported record Q4FY26 revenue of $68.1 billion, a 73% year-over-year surge, alongside adjusted earnings per share (EPS) of $1.62 that topped Wall Street’s $1.53 estimate. The company guided Q1 revenue at around $78 billion (+/- 2%), exceeding analyst forecasts of $72.6 billion. Nvidia’s margins soared to 75%, highlighting superior profitability in AI accelerators like the H100 and upcoming Blackwell series.

On February 17, Meta and Nvidia announced a major partnership for AI data centers. Meta will use millions of Nvidia’s Blackwell and Rubin GPUs (graphics processing units), plus Grace and Vera CPUs (central processing units) and Spectrum-X networking, to train and run large AI models. This marks Nvidia’s first big deployment of standalone Grace CPUs. Meta will also apply Nvidia’s secure computing tech to WhatsApp and beyond.

AMD Stock Forecast

AMD posted solid Q4FY25 revenue of $10.3 billion, reflecting 34% year-over-year growth, with adjusted EPS of $1.53 exceeding analyst expectations. Data center revenue hit $5.4 billion, up 39% year-over-year from strong EPYC CPU and Instinct GPU demand, contributing to full-year revenue of $34.6 billion. Gross margins stood at 54%, trailing Nvidia but improving on cost efficiencies.

On February 25, AMD also secured its own multiyear deal with Meta, strengthening its position against rival Nvidia. Meta is investing in 6 gigawatts of computing power from AMD, valued at about $100 billion over five years. First shipments of custom MI450 GPUs and Venice CPUs will arrive in the second half of 2026. Meta also receives warrants for up to 160 million AMD shares, tying their success together.

Concluding Thoughts

Nvidia holds about 85% to 92% of the discrete GPU market and 70% to 95% of AI chips, fueled by its mature ecosystem that justifies premium pricing. Meanwhile, AMD has about 7% to 10% but is gaining traction via MI300X GPUs, EPYC processors, and hyperscaler partnerships, positioning it for accelerated 2026 growth in cost-sensitive AI deployments.

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