Nvidia vs. AMD: Which AI Chip Stock Has More Room to Run After AMD's Surge Past $1 Trillion?
AMD stock has nearly tripled this year, propelling the company into the $1 trillion club.
Overview
As of the closing bell on Sept. 25, Advanced Micro Devices (NASDAQ: AMD) finished the week reaching a historic milestone: the semiconductor company punched its ticket to the $1 trillion club. AMD stock has rallied 195% this year while its rival, Nvidia (NASDAQ: NVDA), has gained closer to 20%.
The disparity between these share price gains feels backwards. Nvidia is bigger than AMD, and it is growing faster. This gap presents an interesting argument right now: is the market overpaying for AMD because it suddenly has a cleaner story, or has AMD's stock price gotten ahead of the company's earnings? Let's dig in and find out.
Image source: The Motley Fool.
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Originally published at www.fool.com.