Prediction: Nvidia Stock Will Outperform AMD Through 2028

The ongoing battle between Advanced Micro Devices (AMD) and Nvidia (NVDA) stocks intensified with the onset of the artificial intelligence (AI) era in 2023. For the first three years, Nvidia outperformed AMD, but in 2026, AMD's stock surged by 115%, while Nvidia's only grew by 15%. However, with Nvidia's stock now trading near a market-average level, its growth could translate directly into stock price appreciation.

Nvidia's data center division contributes a significant portion to its total revenue, making its overall revenue growth at 106% year over year, compared to AMD's 50%. Despite AMD's impressive data center growth rate of 107% year over year, its consumer division growth was slower, and its overall revenue growth was 50%. Nvidia's stock is undervalued compared to the market, meaning it has the potential for substantial upside.

In contrast, AMD is currently overvalued, with a valuation that may limit further upside as earnings need to grow into the stock price. The Motley Fool's Stock Advisor analysts predict that Nvidia will outperform AMD through 2028, as Nvidia's stock remains undervalued and poised for significant growth.