Quick Read
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NVDA’s $82B quarter dwarfs AMD’s $10B as Blackwell, NVLink, and CUDA create a unified stack AMD is still racing to match.
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Perplexity chose NVIDIA’s Vera CPUs over x86 chips, with the Vera CPUs running 1.5x faster, a move that signals NVIDIA is now threatening AMD’s EPYC server CPU stronghold directly.
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AMD’s 141% YTD run and 184x trailing P/E leave no margin for error when its MI450 volume ramp lands in H2 2026.
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NVIDIA (NASDAQ: NVDA) and AMD (NASDAQ: AMD) both closed strong quarters, but the ground shifted this week when Perplexity picked NVIDIA’s new Vera CPUs over x86 server chips for its multi-agent AI coding stack, running 1.5 times faster than standard server processors. That decision reframes the earnings comparison. One company now sells GPUs, CPUs, networking, and software as one bundle. The other is still assembling its answer.
AI Factories Carry NVIDIA. Data Center Carries AMD, Barely.
NVIDIA’s Q1 FY27 showed revenue of $81.61B, up 85.2% YoY, with Data Center at $75.25B (+92%) and Networking at $14.8B (+199%). Jensen Huang framed it plainly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” Blackwell, NVLink Fusion, and Spectrum-X are selling as one unified stack.
AMD’s Q1 FY26 was solid but smaller. Revenue hit $10.25B (+37.9% YoY), Data Center reached $5.78B (+57%), and non-GAAP EPS came in at $1.37. Lisa Su leaned on the pipeline: “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations.” The MI450 volume ramp lands in H2 2026.
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Business Driver |
NVIDIA |
AMD |
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Data Center Revenue |
$75.25B |
$5.78B |
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Non-GAAP Gross Margin |
75.0% |
55% |
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Networking Attach |
InfiniBand, Spectrum-X, NVLink Fusion |
Pensando (subscale) |
Full Stack Sovereign vs. Fast Follower
The Perplexity win validates NVIDIA’s push into a new $20 billion CPU vertical that used to belong to x86 vendors. NVIDIA is parlaying GPU share into host-CPU sockets, exactly the margin territory AMD’s EPYC franchise defends. AMD fights a two-front war: chase NVIDIA in accelerators with MI450/Helios and protect server CPU turf from Vera.
Customer deals look close on paper (OpenAI signed 10+ GW with NVIDIA and 6 GW with AMD), but NVIDIA’s CUDA-X and Dynamo software layer keeps inference workloads sticky. ROCm 7 is improving but still short of moat status.
The Next Test Is Whether Vera Actually Ships
First, whether MI450 shipments in H2 2026 meet the “exceeding expectations” language Su used, since AMD’s 184x trailing P/E leaves no room for a slip. Second, whether Vera CPU adoption spreads beyond Perplexity into hyperscalers. NVIDIA guided Q2 revenue to $91.0B, and analysts carry a target of $301.62.
Why I Lean NVIDIA While Staying Constructive on AMD
I lean NVIDIA here. The Perplexity decision signals that inference buyers default to Blackwell plus NVLink plus CUDA when latency matters. That is a moat. AMD remains healthy. Data Center up 57% and free cash flow of $2.57B (+253%) show the business is compounding. But shares already ran 140.99% year to date, and last week gave back 11.15%. For the platform winner, NVIDIA is cleaner. For the higher-variance catch-up trade, AMD works, provided Helios ships on time.
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Contact editorial@247wallst.com for any questions or corrections.
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Nvidia Vera CPU Expands Market Reach
This article first appeared on GuruFocus.
Nvidia (NVDA, Financials), a semiconductor company known for graphics processors and AI data center systems, is pushing further into the traditional CPU market with its upcoming Vera processor.
The company says Vera’s high core count can help it outperform processors based on the x86 architecture used by Intel and AMD.
Wedbush analyst Matt Bryson said the development supports Nvidia’s broader effort to move beyond AI accelerators. He sees networking and general-purpose computing as important parts of the company’s growth story over the next several years.
That matters because Nvidia has built much of its recent growth around GPUs used for artificial intelligence. Expanding into CPU workloads could give the company access to markets that have historically been dominated by Intel and AMD.
Nvidia introduced the broader strategy at its GTC event, arguing that its computing platform can handle more than accelerator-based workloads.
For investors, the next question is how Vera performs when it reaches customers and whether Nvidia can turn its AI leadership into meaningful share in the broader processor market.
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Wedbush: Nvidia Vera CPU Could Supercharge Its Next Growth Wave
This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) drew fresh attention after Wedbush said the company’s upcoming Vera central processing unit, or CPU, could strengthen its position in the server processor market through a higher core count.
Wedbush said Vera is expected to outperform processors based on the x86 architecture, the chip design standard used by many servers and personal computers. The firm believes the performance improvements could help Nvidia compete more directly with established CPU suppliers while broadening its long-term market opportunity.
Nvidia has been expanding beyond graphics processors into AI infrastructure, combining CPUs, GPUs and networking products to support data center workloads. Wedbush said Vera could complement that strategy by giving customers a more integrated computing platform for artificial intelligence applications.
The research note suggested the new processor may increase Nvidia’s total addressable market by allowing the company to pursue additional enterprise and cloud computing opportunities.
Nvidia has continued to invest in AI hardware as demand for high-performance computing systems remains strong across cloud providers, enterprises and other large-scale customers.
Cathie Wood’s ARK Says AMD Chips ‘Can Already Be More Performant Per Dollar’ Than Nvidia
Advanced Micro Devices Inc. (NASDAQ:AMD) is positioning itself to challenge Nvidia Corp.‘s (NASDAQ:NVDA) long-standing dominance in the lucrative AI accelerator market.
According to a fresh analysis released by Cathie Wood‘s ARK Invest, internal research reveals that AMD chips “can already be more performant than Nvidia chips” per dollar on select workloads, highlighting a massive shift in data center cost efficiency.
The CPU Playbook Applied to GPUs
ARK Invest’s Director of Research, AI & Cloud, Frank Downing, highlighted that AMD is running the same playbook it previously deployed to successfully disrupt Intel Corp. (NASDAQ:INTC). After holding nearly zero server market share in 2017, AMD’s server CPU revenue share skyrocketed to 46% by the first quarter of 2026 due to consistent, power-efficient chip delivery.
AMD is now utilizing this aggressive execution strategy against Nvidia by launching Helios, a comprehensive rack-scale solution arriving in the second half of this year. ARK remains highly optimistic about Helios, pointing to high-profile customer commitments from OpenAI, Meta Platforms Inc. (NASDAQ:META), and Oracle Corp. (NYSE:ORCL).
Additionally, the emergence of agentic AI is acting as a major tailwind for AMD’s core chip business. As highly capable AI agents command significantly more traditional compute resources than early AI chatbots, CPUs are becoming increasingly critical to the evolving AI ecosystem.
AMD had nearly zero server CPU market share in 2017. By Q1 2026, they controlled 46% of server CPU revenue. @downingARK, Director of Research, AI and Cloud, breaks down why AMD is now running the same playbook against NVIDIA in AI accelerators in ARK’s new Stock Stories series. pic.twitter.com/3YPw0fLLl3
— ARK Invest (@ARKInvest) July 9, 2026
Read Also:Semiconductor ETFs Draw Record $7.1 Billion as Investors Buy the AI Chip Dip
Scaling in a Trillion-Dollar Market
This intense chip rivalry unfolds as global technology capital expenditure as a percent of GDP outpaces spending from the historic tech bubble era. The top four hyperscalers alone are expected to spend over $700 billion in 2026.
Looking ahead, ARK Invest forecasts that the total addressable market (TAM) for AI systems will triple by 2030, reaching a staggering $1.5 trillion in annual sales.
Although Nvidia maintains a firm grip on the market and competitors like Google’s parent Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), and Amazon.com Inc. (NASDAQ:AMZN) actively pursue custom in-house hardware projects, ARK concludes that AMD is primed for growth.
Armed with strong chip architectures and a proven design team, AMD is expected to “capture a reasonable share of the future AI compute TAM” from its small current baseline.
How Has AMD Performed In 2026?
AMD shares were up 155.29% year-to-date, up 14.98% over the last month, and higher by 295% over the year. It closed 5.67% higher at $546.72 per share on Thursday, and was down 0.12% in overnight trading.
Benzinga’s Edge Stock Rankings indicate that AMD maintains a strong price trend in the short, medium, and long terms, with a good growth score.
https://finance.yahoo.com/markets/stocks/articles/cathie-woods-ark-says-amd-080324347.html
