From Nasdaq: 2025-04-04 07:15:00

Nvidia is dominating the data center market, but AMD offers a discounted alternative for investors. Large data center operators prefer not to be locked into one GPU provider, so both Nvidia and AMD stand to benefit from increased data center infrastructure spending. The question remains: Is AMD a worthy buy over Nvidia?

At the recent GTC A1 conference, Nvidia CEO Jensen Huang predicted a massive $1 trillion annual spend on data center infrastructure by 2028. While Nvidia currently captures about a quarter of that revenue, AMD’s data center sales are expected to approach $25 billion in the next four years. AMD’s diverse chip portfolio includes GPUs, embedded processors, and CPUs, offering potential for growth.

While AMD’s total 12-month trailing revenue is $25.8 billion, its data center revenue in 2024 was $12.6 billion. With a forward P/E ratio of 22 and operating margins improving, AMD’s stock is attractively priced compared to the market average. If data center revenue outpaces other divisions, AMD’s stock could see significant growth in the coming years.

Investors have a second chance at a lucrative opportunity with AMD, as the stock is currently undervalued. Analysts issue “Double Down” alerts for companies on the verge of growth, similar to Nvidia, Apple, and Netflix. With AMD’s potential for growth in the data center market and improving margins, now may be the ideal time to invest before it’s too late.



Read more at Nasdaq: 1 Prediction From Nvidia That Should Excite AMD Investors