Advanced Micro Devices (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA) have been competing in the chipmaker market, with Nvidia being far more profitable and the better stock. However, AMD saw a 77% rise in shares last year, outperforming Nvidia’s 39% gain. Will AMD continue to excel in 2026?

AMD’s growth potential looks promising as big tech companies use its chips for various applications. CEO Lisa Su projects a 35% annual revenue growth over the next few years. On the other hand, Nvidia’s growth rate has been declining, indicating a potential shift in market dynamics.

Despite AMD’s smaller market cap of $380 billion compared to Nvidia’s $4.5 trillion, Nvidia is actually the cheaper investment based on per-share profits. AMD’s forward P/E ratio is higher than Nvidia’s, but as it expands its AI chip business, profitability may improve.

Investors face a tough choice between AMD and Nvidia. While AMD may have more upside potential, Nvidia’s position as an AI chip leader and solid profitability make it a strong contender. However, with AMD scaling up its AI chip business, it may outperform Nvidia this year.

Read more at Nasdaq: AMD Stock Soared Past Nvidia Last Year. Will That Trend Continue in 2026?