Advanced Micro Devices, Inc. (AMD): Gap with NVIDIA Widening?

We just covered Sell These 4 Stocks and Go All In on These 3 Stocks Before May 9th for 100x Returns? and Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks 6th on this list.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is the biggest competitor of NVIDIA in the AI and GPU universe. However, Instagram influencers have highlighted the absolute gap between AMD and NVIDIA that is actually widening in dollar terms. The data center revenue for the latter reached nearly $194 billion in FY2026, while the Instinct GPU revenue of the former is estimated at $7–$8 billion. Finance influencers argue that while AMD is winning the right to exist, it is not yet winning the war, as NVIDIA grows by tens of billions per quarter while AMD grows by single billions. The ROCm software ecosystem of AMD is still playing catch-up to NVIDIA CUDA. Tiktokers have pointed out that AMD MI300X chips often deliver only 45% of their theoretical peak performance in real-world settings due to software maturity issues, compared to over 90% for NVIDIA.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is also unlucky in the sense that it is caught between two dominant chip industry titans, forcing it to spend heavily on development for both CPUs and GPUs. For example, the Q1 2026 earnings of Intel show improved manufacturing yields that pose a renewed threat to AMD EPYC server dominance. Another important factor is AMD’s reliance on TSMC. For comparisons, Intel is a manufacturing powerhouse. As NVIDIA and Apple lock up 2nm and 3nm capacity, AMD may struggle to secure enough wafers to meet the $60 billion Meta deal commitments without paying premiums. As a pure-play fabless designer, any instability in the Taiwan Strait remains a catastrophic risk that is more acute for AMD than for more diversified players.

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