NVIDIA Corporation (NASDAQ:NVDA) depends far more heavily on data centers than Advanced Micro Devices, Inc. (NASDAQ:AMD). That makes AMD more diversified by reported sales, although diversification alone cannot establish which stock is safer. The two AI stocks made it to our list of Best AI Infrastructure Stocks to Buy for the Long Term, but their revenue mixes offer different exposure to a spending slowdown.
A revenue shock lands differently
Nvidia reported $89 billion of data-center sales against $96.221 billion of total revenue for the quarter ended July 26. AMD reported $6.7 billion against $11.536 billion for its quarter ended June 27. Data centers therefore supplied about 92.5% and 58.1% of sales, respectively. These reporting periods differ, and AMD’s category includes EPYC server processors alongside Instinct accelerators; it is not an AI-only revenue measure.
Cut each reported data-center business by 10% and hold everything else constant. Nvidia’s total revenue falls about 9.25%, versus 5.8% for AMD. At a 20% segment decline, the mechanical reductions become 18.5% and 11.6%. This tests revenue concentration.
AMD’s other businesses are not guaranteed offsets. Its gaming revenue fell 31% year over year in the June quarter, while client revenue rose 23% and embedded revenue rose 19%. A broad technology downturn could hit several markets together. Conversely, winning server and accelerator business could let AMD grow even if industry spending slows.
Diversification has a price and a limit
A more concentrated revenue base can still retain more profit after a setback. Neither concentration nor margins, considered alone, settles the investment decision. As of October 16, Stock Analysis displayed trailing free-cash-flow multiples near 41 for Nvidia and 106 for AMD. These historical ratios are sensitive to investment and working capital. AMD needs substantial future cash growth to support that premium; our earlier analysis examines what AMD must deliver to justify its richer valuation.
Insider Monkey counted 285 Nvidia holders in Q2 2026, up from 275, and 164 AMD holders, up from 134. Voyager Global increased Nvidia shares 9%; Southpoint reduced AMD shares 6%. These June positions predate the results, and the tracked fund population changed between quarters. September 30 short interest was 1.3% of float for Nvidia and 2.4% for AMD.
AMD offers less direct revenue sensitivity to a uniform data-center decline today. Its advantage would weaken if non-data-center demand also deteriorated or data centers became a larger share of sales. Nvidia offers more concentrated exposure with a stronger profit cushion. The next useful evidence is whether AMD’s diversification survives its AI expansion while cash generation catches up with the stock’s price.
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