Advanced Micro Devices (NASDAQ: AMD) or Nvidia (NASDAQ: NVDA) -- which one to buy? It's a timeless argument, whether you're talking about gaming GPUs or artificial intelligence (AI). Nvidia has been the biggest winner overall, rising nearly 1,110% since 2023 compared to AMD's 209% gain. However, since 2025, AMD has been the better pick, rising 65% versus Nvidia's 30%. While Nvidia has established a strong foothold in the AI arena, AMD looks to be clawing back. Which is the better stock for 2026? Let's find ...

Core Insights - Nvidia has experienced significant volatility over the past five years, transitioning from a gaming-focused revenue model to a data center-driven growth strategy fueled by artificial intelligence demand [2][4]. Financial Performance - In early 2021, Nvidia's gaming segment contributed approximately 50% of its revenue, but the company faced a 24% stock decline due to GPU shortage fears [2]. - Nvidia reported record quarterly revenue of $5 billion for Q4 of fiscal 2021, leading to a stock gain of 125% that year [3]. - However, between November 2021 and October 2022, Nvidia's stock price fell by 66% due to inflation and slowing economic growth [3]. - Currently, Nvidia's data center segment generated record revenue exceeding $51 billion in the third quarter, which is more than ten times its total revenue from five years ago [4]. - The company's market capitalization stands at $4.6 trillion, with a current stock price of $191.13 [5]. - Management forecasts fourth-quarter revenue of $65 billion, indicating a growth rate of 65% [6]. Investment Returns - An investment of $100 in Nvidia stock five years ago would now be worth $1,479, reflecting a remarkable gain of 1,380% [7].

At one point in 2025, Nvidia's value hit $5 trillion. I foresee it going much higher in 2026.In December 2024, I made the prediction that Nvidia (NVDA +0.41%) -- then carrying a $3.4 trillion market cap -- would reach a $5 trillion market cap in 2025. This came true in October, although the stock has pulled back since then, and the company's value today sits at about $4.5 trillion. Now, I think that it can reach $6 trillion easily in 2026.To do that, the stock would have to rise by at least 33%, making it a ...

Advanced Micro Devices (AMD) stock is on a solid run, rewarding investors with gains that have outpaced those of its much larger rival, Nvidia (NVDA). AMD shares have climbed more than 104% over the last 12 months, reflecting enthusiasm around artificial intelligence (AI). This rally is particularly notable given the persistent skepticism surrounding AMD’s ability to compete head-to-head with Nvidia in the high-end graphics processing unit (GPU) market. Nvidia remains the dominant player in advanced GPUs, ...

Key Points Hyperscalers are doubling down on artificial intelligence (AI) infrastructure investments. On the surface, this is terrific news for data center and chip stocks. Palihapitiya thinks the hidden winner of AI infrastructure will be a particular raw material. 10 stocks we like better than United States Commodity Index Funds Trust - United States Copper Index Fund › One investor who has burst onto the scene in recent years is Chamath Palihapitiya. The venture capitalist is largely consider ...

Core Insights - The article discusses the evolution and significance of "pick-and-shovel" markets, highlighting how companies like Intel, Qualcomm, NVIDIA, and Amazon have adapted to changing technological landscapes and consumer demands [1][4][25]. Group 1: Historical Context - The concept of pick-and-shovel markets has existed for centuries, with Samuel Brennan being an early example of exploiting such a market during the gold rush [2][3]. - Brennan's strategy involved purchasing mining equipment and reselling it at high markups, leading to his success as the first West Coast millionaire [3]. Group 2: Modern Examples - Intel became a dominant player in the CPU market after being selected as the microprocessor supplier for IBM PCs, demonstrating the effectiveness of scale in pick-and-shovel businesses [4][5]. - Qualcomm and NVIDIA also exemplify this trend, with Qualcomm leading in digital communications chipsets and NVIDIA dominating the GPU market in data centers [5][6]. Group 3: Innovation and Scale - The success of these companies is attributed to a combination of foresight, skill, and strategic partnerships, which allowed them to leverage their scale for competitive advantage [6][7]. - All three companies utilize backward-compatible designs to guide buyers' upgrade paths, preventing rivals from gaining similar advantages [8]. Group 4: Amazon's Mechanical Turk - Amazon's Mechanical Turk (MTurk) emerged as a solution to product labeling challenges, allowing users to perform microtasks that machines could not handle effectively [12][15]. - Despite initial challenges, MTurk eventually demonstrated its scalability, particularly when used by researchers like Fei-Fei Li for large-scale image labeling [19][20]. Group 5: Economic Implications - The article emphasizes that while investments in innovation are beneficial for society, they can also lead to monopolistic behaviors, as seen in the historical context of pick-and-shovel markets [28][29]. - Companies in these markets share similar incentives to innovate, but the outcomes can vary, as illustrated by Amazon's experience with MTurk, which did not yield significant financial returns despite its impact [26][27].

Core Viewpoint - NVIDIA Corporation (NASDAQ:NVDA) is considered one of the best stocks to buy in 2026 for beginners, with analysts highlighting its potential for growth and current valuation as attractive [1]. Group 1: Analyst Ratings and Price Targets - Jefferies raised the price target for NVIDIA to $275 from $250, maintaining a Buy rating and indicating that the stock is "pretty cheap" based on its valuation metrics [1]. - J.P. Morgan reiterated a Buy rating on NVIDIA without a specific price target, emphasizing the company's pivotal role in modern drug discovery through its GPU infrastructure [2]. - Wells Fargo also reiterated a Buy rating on NVIDIA, setting a price target of $265 [4]. Group 2: Strategic Partnerships and Market Position - NVIDIA's $1 billion co-innovation partnership with Eli Lilly is highlighted as a significant factor supporting durable demand for its products in the pharmaceutical sector [2]. - The company's expanding role in life sciences and healthcare is noted, with its full-stack approach providing significant operating leverage across various applications [3]. Group 3: Technological Advancements and Cost Efficiency - NVIDIA's advancements in robotics, integrated simulation, and edge-compute technology are enabling automation in healthcare laboratories, which could drastically reduce costs and increase throughput [4].

Core Insights - OpenAI is aggressively expanding its partnerships with chipmakers to secure processing power for its AI technology, with a recent $10 billion deal with Cerebras marking a significant step in this direction [2][17] - The company has committed over $1.4 trillion to infrastructure deals with major players like Nvidia, AMD, and Broadcom, aiming for a $500 billion private market valuation [3] - Nvidia remains a key partner, having invested $100 billion to support OpenAI's infrastructure, which includes a project to deploy 10 gigawatts of Nvidia systems [5][6] Nvidia - OpenAI has relied on Nvidia's GPUs since its inception, and the partnership has deepened with Nvidia's commitment of $100 billion to support OpenAI's infrastructure [4][5] - The first phase of the Nvidia project is expected to come online in the second half of the year, although there are uncertainties regarding the progression of the agreement [7] - Nvidia's investment will be deployed upon the completion of the first gigawatt of power [8] AMD - OpenAI plans to deploy six gigawatts of AMD's GPUs over multiple years, with AMD issuing a warrant for up to 160 million shares, potentially giving OpenAI a 10% stake in AMD [10] - The first gigawatt of AMD chips is expected to roll out in the second half of 2026, with the deal valued in the billions [11] Broadcom - OpenAI and Broadcom have agreed to deploy 10 gigawatts of custom AI accelerators, with the project expected to be completed by the end of 2029 [14] - Broadcom's CEO has indicated that significant revenue from this partnership is not anticipated in 2026, framing it as a long-term collaboration [15] Cerebras - OpenAI's recent agreement with Cerebras involves deploying 750 megawatts of AI chips, with the deal valued at over $10 billion [16][17] - Cerebras' chips are designed to deliver responses up to 15 times faster than traditional GPU systems, positioning the company for potential public market entry [17] Potential Partners - OpenAI has signed a $38 billion cloud deal with Amazon Web Services, which includes plans for additional infrastructure development [20] - Discussions are ongoing for Amazon to potentially invest over $10 billion in OpenAI, although no official decisions have been made [21] - Google Cloud provides computing capacity to OpenAI, but OpenAI has no plans to utilize Google's in-house chips [22] - Intel, which has lagged in AI chip development, is working on a new data center GPU designed for AI workloads, with customer sampling expected in late 2026 [24]

Core Insights - Nvidia has established itself as a market leader in artificial intelligence (AI) by focusing on developing high-powered graphics processing units (GPUs) ahead of the AI boom [1][4] - The company has maintained its competitive edge through annual GPU updates and by creating a comprehensive ecosystem of supporting products [2] - Nvidia's revenue has surged to over $130 billion in the most recent full year, with gross margins consistently above 70%, reflecting its high profitability [4] Company Strategy - Nvidia's strategy extends beyond GPUs; the company aims to become the backbone of AI across various industries [5] - A notable partnership with Nokia aims to transform the telecom industry by developing an AI platform for the transition from 5G to 6G technology, exemplified by the introduction of the Arc Aerial RAN Computer [6] Market Performance - Nvidia's stock has experienced a remarkable increase of 1,000% over the past three years, driven by its leadership in the AI market [4][7]

Group 1 - The rise of artificial intelligence (AI) is driving significant growth in the technology sector, particularly benefiting semiconductor stocks [1] - Companies like Advanced Micro Devices, Broadcom, and Taiwan Semiconductor Manufacturing have experienced heightened interest during the AI revolution, with Nvidia's stock price soaring nearly 1,000% in three years, making it the most valuable company globally [2] - Increased competition in the GPU industry and the rise of custom ASICs from major cloud providers like Amazon, Microsoft, and Alphabet are shifting the narrative around Nvidia, presenting potential challenges to its dominance in the data center market [3] Group 2 - Micron Technology is predicted to become a favored stock among growth investors, as its role in the AI chip landscape is gaining recognition [4] - The semiconductor sector has consistently impressed investors with quarterly earnings, but understanding future demand trends requires deeper insights into big tech's spending patterns [6] - Major tech companies are projected to invest nearly half a trillion dollars in AI infrastructure by 2026, indicating robust demand for AI accelerators [7] - The demand for memory and storage solutions is surging due to increasing AI workloads, positioning Micron Technology favorably as it specializes in high-bandwidth memory chips [8]