Key Highlights
- Nvidia’s fiscal 2026 revenue reached $215.9 billion, representing a 65% year-over-year surge
- The Data Center segment for Nvidia delivered $193.7 billion in annual revenue
- AMD’s full-year 2025 revenue totaled $34.6 billion, with Data Center sales climbing 32% to $16.6 billion
- Nvidia’s Data Center business exceeds AMD’s equivalent segment by more than 11 times
- Export control restrictions cost AMD approximately $440 million in charges related to MI308 GPU products
Both Nvidia and AMD play crucial roles in the AI semiconductor landscape, yet their financial performance reveals starkly contrasting business trajectories and market positions.
For fiscal 2026, Nvidia delivered revenue of $215.9 billion, marking a substantial 65% climb compared to the prior year. The company maintained an impressive gross margin of 71.1%. During the fourth quarter specifically, Nvidia recorded $68.1 billion in total revenue, with its Data Center division alone accounting for $62.3 billion.
Across the complete fiscal year, Nvidia’s Data Center operations produced $193.7 billion in revenue. This division has evolved into the company’s primary revenue engine, driven predominantly by AI infrastructure investments from major cloud providers and technology enterprises.
Nvidia’s competitive advantage extends beyond silicon. The company provides comprehensive solutions encompassing accelerators, networking infrastructure, complete systems, and an integrated software ecosystem that enterprises utilize for AI deployment. This holistic approach creates significant switching costs for customers considering alternatives.
The primary vulnerability facing Nvidia involves customer concentration. Given the company’s heavy reliance on capital expenditure cycles from hyperscale data center operators, any deceleration in this spending could substantially impact financial performance.
Meanwhile, AMD delivered respectable full-year 2025 performance with $34.6 billion in total revenue. The company’s Data Center division generated $16.6 billion annually, representing 32% growth versus 2024. This expansion was fueled by strong adoption of EPYC server processors alongside Instinct AI accelerator products.
AMD’s Uphill Battle
During the fourth quarter, AMD achieved a 54% gross margin, $1.8 billion in operating income, and $1.5 billion in net income. While these figures demonstrate healthy profitability, the magnitude differential compared to Nvidia remains substantial.
Advanced Micro Devices, Inc., AMD
The Data Center revenue comparison illustrates the challenge: Nvidia’s annual figure surpasses AMD’s by more than 11-fold. This massive disparity underscores how nascent AMD’s position remains within the AI infrastructure market.
To be clear, AMD doesn’t require market leadership over Nvidia to deliver shareholder value. Capturing even modest market share within the server and accelerator segments could significantly boost financial results.
However, AMD confronts genuine obstacles. During fiscal 2025, the company absorbed roughly $440 million in charges stemming from U.S. export restrictions affecting its MI308 data-center GPU products. This expense highlights geopolitical and regulatory risks layered atop the competitive pressure from Nvidia’s market dominance.
Wall Street’s Perspective
Analyst sentiment favors both semiconductor companies, though Nvidia commands stronger conviction. MarketBeat data shows 54 analysts covering Nvidia with a Buy consensus, comprising 48 buy ratings, 4 strong buy ratings, and 2 hold ratings. The consensus 12-month price target stands at $275.25.
For AMD, 40 analysts provide coverage with a Moderate Buy consensus: 1 strong buy rating, 31 buy ratings, and 8 hold ratings. The average price target reaches $296.44.
Nvidia’s more bullish consensus reflects its commanding market leadership and superior profit margins. The relatively tempered outlook for AMD stems from valuation concerns and uncertainty surrounding its ability to narrow the competitive gap.
Interestingly, AMD’s average price target of $296.44 exceeds Nvidia’s $275.25 figure, implying analysts perceive greater upside potential from AMD’s current valuation, despite Nvidia’s stronger fundamental business position.
