AMD Reaches a $1 Trillion Market Cap. Can It Finally Dethrone Nvidia?

AMD (AMD) has hit a $1 trillion market cap after a 200% gain this year, but the valuation gap with NVDA is the story. AMD trades at 158x trailing earnings. NVDA trades at 30x.

The growth numbers don't justify that premium. AMD's data center business is expanding 107% year over year, a strong clip. NVDA's is growing faster at 117%, and NVDA remains the larger company. Faster growth, bigger scale, and a fraction of the multiple.

The source article argues AMD is overvalued relative to its fundamentals. Its math: if the two valuations normalize, AMD could face roughly 25% downside while NVDA could double. Those are the article's projections, not a forecast we can verify, but they frame the setup clearly.

Interpretation: a 200% run has pulled AMD's multiple well beyond what a 10-point growth deficit to NVDA would suggest. The market is pricing AMD as the challenger with room to close the gap, while treating NVDA's 30x as a ceiling rather than a floor. That asymmetry is what the bearish case rests on.