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AMD vs. Nvidia: 1 Metric Tells Me Which Is Clearly the Better Buy for 2026

AMD's stock is valued at a far higher premium than Nvidia's.

AMD vs. Nvidia: 1 Metric Tells Me Which Is Clearly the Better Buy for 2026

Published August 18, 2026 · Category: Finance

Overview

Nvidia (NASDAQ: NVDA) has been the AI stock to own over the past few years, but Advanced Micro Devices (NASDAQ: AMD) seems to have stolen its crown this year. So far, Nvidia has risen 20% in 2026, while AMD is up an impressive 140%. If you look back to the start of the AI race in 2023, Nvidia still holds the lead with a 1,440% gain to AMD's 695%, but both stocks have been excellent investments in recent years.

What's the best buy moving forward? In my view, there's one specific metric that vaults one in front of the other, and after you understand it, there will be no question as to which is the better buy.

Image source: The Motley Fool.

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Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.