Prediction: Nvidia Stock Will Outperform AMD Through 2028
2026-09-03 09:30
•Keithen Drury •The Motley Fool
••••••• •• Axe Cap view
Why Nvidia Looks Better Than AMD Through 2028
Nvidia’s data center dominance and valuation edge set it up to outperform AMD over the next several years.
In the current AI-driven semiconductor race, Nvidia stands out. Its revenue growth rate of over 100% last year dwarfs AMD’s 50%, mainly thanks to Nvidia’s strong position in data centers—a sector growing faster and paying higher margins than AMD’s consumer market exposure. AMD’s stock trades at more than 60 times forward earnings, nearly triple Nvidia’s valuation, meaning investors are already pricing in substantial growth that may be hard to deliver. For South African investors, direct exposure is limited since these are US-listed names, but the USD/ZAR rate provides an indirect angle. A stronger dollar could weigh on rand-based investments, but if Nvidia continues to outperform, global tech sentiment could improve demand for rand-hedged equities like Naspers and Prosus, which also have big tech components. That said, a tech sector sell-off or a sharp USD rally could derail Nvidia’s momentum. this is just our opinion and not financial advice
Prefer holding Nvidia exposure via US markets or rand-hedged multi-asset funds rather than chasing AMD at its current valuation. Watch USD/ZAR closely, as a weaker rand helps domestic tech-driven counters.
- NVDA
- AMD
- USD/ZAR
- Naspers
- Tech regulation tightening globally
- USD strength causing rand pressure
6/10
The article argues that Nvidia will outperform AMD through 2028 despite AMD's strong 2026 performance. Nvidia's revenue growth of 106% significantly exceeds AMD's 50% growth, driven by Nvidia's dominant data center focus versus AMD's slower-growing consumer division. Additionally, AMD trades at 62x forward earnings (nearly 3x more expensive than Nvidia), suggesting AMD must grow into its valuation while Nvidia remains undervalued relative to the market.
Our take is based on reporting first published by The Motley Fool.