Nvidia vs AMD Overview
The two largest GPU and processor companies compete across data center AI, gaming, and enterprise markets. Nvidia dominates AI training while AMD gains ground in CPUs and data center GPUs.
| Metric | Nvidia (NVDA) | AMD (AMD) |
|---|---|---|
| Sector | Semiconductors | Semiconductors |
| Market Cap | $2.8T | $175B |
| Revenue | N/A | N/A |
| Net Income | $72.9B | $4.7B |
How Does Nvidia Make Money?
Nvidia (NVDA) operates in the Semiconductors sector with a market cap of $2.8T. For a full breakdown of Nvidia’s revenue sources, see the Nvidia revenue breakdown.
Nvidia Revenue Breakdown
| Revenue Stream | FY2025 (Jan) | FY2024 (Jan) | YoY Growth |
|---|---|---|---|
| Data Center | $115.2B | $47.5B | +142.5% |
| Gaming | $11.4B | $10.4B | +9.6% |
| Professional Visualization | $2.1B | $1.6B | +31.3% |
| Automotive | $1.7B | $1.1B | +54.5% |
| Total Revenue | $130.5B | $60.9B | +114.2% |
How Does AMD Make Money?
AMD (AMD) operates in the Semiconductors sector with a market cap of $175B. For a full breakdown of AMD’s revenue sources, see the AMD revenue breakdown.
AMD Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Data Center | $12.6B | $6.5B | +93.8% |
| Client (PCs) | $7.2B | $4.7B | +53.2% |
| Gaming | $1.2B | $6.2B | -80.6% |
| Embedded | $3.7B | $5.8B | -36.2% |
| Total Revenue | $25.8B | $22.7B | +13.7% |
Nvidia vs AMD Profitability
Nvidia: Yes, Nvidia is profitable. The company reported net income of $72.9B on total revenue of $130.5B. With an operating margin of 64.1%, Nvidia demonstrates solid profitability for the semiconductors sector. The gross margin of 77.4% reflects Nvidia’s pricing power and cost structure.
AMD: Yes, AMD is profitable. The company reported net income of $4.7B on total revenue of $25.8B. With an operating margin of 20.9%, AMD demonstrates solid profitability for the semiconductors sector. The gross margin of 52.3% reflects AMD’s pricing power and cost structure.
Key Financial Metrics Comparison
Nvidia Key Metrics
- Gross Margin: 77.4% — Extremely high for a semiconductor company, reflecting Nvidia’s pricing power in AI chips where demand far outstrips supply.
- Operating Margin: 64.1% — An operating margin above 60% is almost unheard of at this scale. It demonstrates how little competition Nvidia faces in high-end AI accelerators.
- Revenue Growth: +114.2% — Doubling revenue at a $130 billion base is historic. For context, Nvidia’s FY2025 revenue exceeds Intel and AMD combined.
- Net Income: $72.9B — Nvidia generated more net profit in a single year than most S&P 500 companies generate in revenue.
AMD Key Metrics
- Gross Margin: 52.3% — Expanding as Data Center (higher-margin) becomes a larger share. Nvidia’s ~77% margin shows upside potential if AMD’s AI accelerator mix shifts higher.
- Operating Margin: 20.9% — Up dramatically from 5.7% as Data Center scale provides operating leverage.
- Data Center Growth: +93.8% — The story stock metric. MI300X AI accelerator revenue exceeded $5B in its first full year.
Which Company is a Better Investment?
Both Nvidia and AMD are significant players in the Semiconductors space. Investors should consider each company’s revenue growth trajectory, profitability, competitive positioning, and exposure to secular trends before making investment decisions. Review the full Nvidia revenue breakdown and AMD revenue breakdown for detailed analysis.
Disclaimer: This comparison is for informational purposes only and does not constitute investment advice.