Key Highlights
- Nvidia’s fiscal 2026 revenue reached $215.9 billion, representing a 65% year-over-year surge
- The company’s Data Center division delivered $193.7 billion in annual revenue
- AMD reported $34.6 billion in total 2025 revenue, with its Data Center segment climbing 32% to $16.6 billion
- Nvidia’s Data Center business exceeds AMD’s by more than 11-fold
- Export restrictions forced AMD to absorb $440 million in charges related to its MI308 GPU lineup
While both Nvidia and AMD play pivotal roles in the AI semiconductor landscape, their financial profiles reveal dramatically different business trajectories and market positions.
Nvidia disclosed fiscal 2026 revenue of $215.9 billion, marking a robust 65% climb compared to the previous fiscal year. The company maintained an impressive gross margin of 71.1%. During the fourth quarter alone, revenue totaled $68.1 billion, with the Data Center division accounting for $62.3 billion of that figure.
Across the entire fiscal year, Nvidia’s Data Center operations accumulated $193.7 billion in revenue. This segment has become the company’s primary growth engine, fueled predominantly by AI infrastructure investments from major cloud providers and technology enterprises.
Nvidia offers much more than standalone processors. The company delivers comprehensive solutions encompassing accelerators, networking infrastructure, complete systems, and a software ecosystem that enables customers to develop their AI applications. This integrated approach creates significant switching costs for clients considering alternatives.
The primary vulnerability for Nvidia lies in customer concentration. Because such a substantial portion of revenue depends on capital expenditure cycles from major data center operators, any deceleration in their spending patterns could significantly impact financial performance.
AMD also delivered impressive full-year 2025 figures. The company generated $34.6 billion in total revenue. Its Data Center division contributed $16.6 billion annually, reflecting 32% growth versus 2024. This expansion was propelled by EPYC server CPU sales and Instinct AI accelerator adoption.
AMD’s Uphill Battle
AMD’s fourth quarter demonstrated a 54% gross margin, operating income of $1.8 billion, and net income totaling $1.5 billion. These represent respectable results, yet the magnitude disparity with Nvidia remains substantial.
Advanced Micro Devices, Inc., AMD
Nvidia’s yearly Data Center revenue surpasses AMD’s equivalent segment by more than 11 times. This chasm illustrates how nascent AMD’s position remains in the AI infrastructure marketplace.
AMD doesn’t necessarily need to surpass Nvidia to deliver compelling investment returns. Capturing even modest market share in the server and accelerator categories could substantially improve its financial metrics.
However, AMD confronts genuine obstacles. During fiscal 2025, the company recognized approximately $440 million in charges stemming from U.S. export restrictions affecting its MI308 data-center GPU products. This highlights geopolitical risks layered atop the competitive challenge of gaining ground against Nvidia.
Analyst Sentiment Breakdown
Wall Street maintains bullish outlooks on both semiconductor companies, though enthusiasm tilts more heavily toward Nvidia. MarketBeat data shows 54 analysts tracking Nvidia with a Buy consensus, comprising 48 buy ratings, 4 strong buys, and 2 hold ratings. The consensus 12-month price target stands at $275.25.
AMD receives coverage from 40 analysts with a Moderate Buy consensus: 1 strong buy rating, 31 buy ratings, and 8 hold ratings. Its consensus price target reaches $296.44.
The more decisive bullish stance on Nvidia mirrors its commanding market dominance and superior profit margins. The measured approach toward AMD reflects uncertainty regarding valuation metrics and the timeline for narrowing the competitive gap.
Interestingly, AMD’s average price target of $296.44 exceeds Nvidia’s $275.25 target, indicating analysts perceive greater percentage upside potential from AMD’s current trading level, despite Nvidia’s stronger fundamental business position.
