AMD vs. Nvidia Stock: One Metric Tells Me Which Is Clearly the Better Buy

The analysis centers on a simple valuation metric to decide which GPU giant is the smarter investment, and the conclusion favors Nvidia over AMD. Nvidia has risen about 60% in the last year, while AMD has jumped roughly 350%; meanwhile Nvidia trades at about 24x forward earnings vs. AMD at around 70x. This divergent valuation, the author argues, makes Nvidia appear the better buy given its growth relative to its multiple. The piece also references The Motley Fool's Stock Advisor and notes Nvidia wasn't among their top 10 buys. In combination, the analysis argues that the growth expectations and earnings potential support Nvidia as the clearer long-term opportunity.