Get them here FREE<\/a>.<\/p>\n Dimension 2: AMD Wins on Momentum and Inflection <\/p>\n
This is where the catch-up thesis lives. AMD’s Q1 FY2026, reported May 5, 2026, delivered $10.25B in revenue, up 38% YoY, with Data Center revenue of $5.78B, up 57%. Management guided Q2 to roughly $11.2B, implying 46% growth: the rate of growth is accelerating. Free cash flow jumped 253% to $2.566B, and operating income rose 83%. The customer roster validates the inflection: Meta committed to a 6 GW Instinct GPU deployment, and OpenAI signed for 6 GW of MI450.<\/p>\n
Price action confirms the regime change. AMD is up 97% year-to-date and 327% over the past year. NVIDIA, the prior leader, is up just 11% YTD. Reddit captures the shift in real time: r\/stocks now hosts threads like “I feel like I should start looking at AMD and MU for the second half of AI” and “Stop calling RAM ‘cyclical’ while treating Nvidia like a ‘secular grower.'” AMD’s current sentiment score sits at 77, peaking at 90 on April 24. The narrative has cracked open.<\/p>\n
Dimension 3: NVIDIA Wins, Decisively, on Margin Quality and Capital Return <\/p>\n
NVIDIA posted a 75% non-GAAP gross margin, an operating margin near 65%, and a net margin around 63% in Q4 FY2026. AMD ran at a 55% non-GAAP gross margin, a 11% operating margin, and a 13% net margin. NVIDIA returned $40.1B in buybacks in FY2026 with $58.5B remaining authorized. AMD repurchased $1.316B in FY2025. On profitability and capital return, NVIDIA is in a different weight class.<\/p>\n
Verdict <\/p>\n
NVIDIA takes two of three dimensions. So why do I still prefer AMD here, and for whom?<\/p>\n
For a retirement investor with a long runway, say 10 years or more, AMD wins. The setup is asymmetric: a smaller revenue base ($34.64B FY2025) compounding off accelerating Data Center wins, expanding gross margins (+170 bps YoY to 55%), and a clean balance sheet (debt\/equity 0.07, interest coverage 28x). When a hyperscaler duopoly becomes a credible duopoly, the second name reprices fastest. That is happening now.<\/p>\n
For a retiree closer to drawdown, who needs ballast and capital return rather than upside, NVIDIA wins. The 75% gross margins, the $40B annual buyback, and the lower earnings multiple do the work a retirement portfolio needs.<\/p>\n
My preference is AMD. The catch-up moment was a long time coming, and the Q1 print was the inflection. NVIDIA remains the higher-quality business. AMD is the better forward return from this price.<\/p>\n
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks <\/p>\n
This analyst’s 2025 picks are up 106% on average. He just named his top 10 stocks to buy in 2026. Get them here FREE<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Quick Read Advanced Micro Devices (AMD) delivered Q1 FY2026 revenue of $10.25B, up 38% YoY, with Data Center…\n","protected":false},"author":2,"featured_media":475218,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[8091,291,289,290,208247,5527,18,17882,17503,118121,19,17,292,82],"class_list":{"0":"post-475217","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-advanced-micro-devices","9":"tag-ai","10":"tag-artificial-intelligence","11":"tag-artificialintelligence","12":"tag-capital-return","13":"tag-data-center","14":"tag-eire","15":"tag-free-cash-flow","16":"tag-gross-margin","17":"tag-gross-margins","18":"tag-ie","19":"tag-ireland","20":"tag-nvidia","21":"tag-technology"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/475217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=475217"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/475217\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/475218"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=475217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=475217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=475217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}