Buy Nvidia or AMD Stock After Rolling Out New AI Platforms?

Core Insights - Nvidia and AMD are positioning themselves as leading AI investments for 2026, showcasing their latest products at CES 2026 [1] Nvidia Developments - Nvidia launched its Vera Rubin AI computing platform, which is in full production and set to roll out to partners later this year [2] - The Vera Rubin platform includes six new chips, including a superchip that integrates CPUs and GPUs, designed for advanced AI workloads [3] - Microsoft will utilize the Vera Rubin superchip for its next-generation AI super factories, highlighting its significance in data-center scale AI [3] AMD Developments - AMD introduced its Helios platform, marketed as the "world's best AI system," aimed at yotta-scale AI infrastructure and large-model building [4] - The Helios platform is built around AMD's Instinct MI455X GPUs and EPYC "Venice" CPUs, directly competing with Nvidia's offerings [4] - AMD also expanded its portfolio with the Ryzen AI 400 / PRO 400 Series processors and the Ryzen Halo mini PC developer platform [5] Performance Comparison - Over the last three years, AMD's stock has increased by 200%, while Nvidia's stock has surged over 1,100% [6] - In 2025, AMD's stock spiked over 70%, outperforming Nvidia's nearly 40% gain [6] - AMD's forward earnings multiple is 35X, slightly lower than Nvidia's 40X, with both companies trading at discounts compared to historical P/E valuations [7] Earnings Projections - AMD's EPS for fiscal 2025 is projected to rise 19% to $3.96, with a further increase of 58% to $6.26 expected in FY26 [9] - Nvidia's EPS estimates for FY26 have risen over 4%, with projections for a 56% increase to $4.66 and a 55% growth to $7.24 in FY27 [10][12] Market Outlook - The presentations at CES 2026 are expected to enhance the outlook for both AMD and Nvidia following the unveiling of their next-gen AI platforms [12] - Nvidia currently holds a Zacks Rank 1 (Strong Buy), while AMD has a Zacks Rank 3 (Hold), indicating a stronger market position for Nvidia despite AMD's growth in the AI sector [13]