Nvidia and AMD Reached a Historic Valuation Split. 1 Stock Is Far Safer.

AMD has nearly tripled in 2026 while NVDA has gained just 23%, opening what The Motley Fool calls a historic valuation split between the two AI GPU rivals. The article argues the wrong stock got the premium.

The fundamental case favors NVDA on both growth and profitability. NVDA's revenue growth stands at 106%, against an expected 75% for AMD next year. NVDA also runs a 62% profit margin versus AMD's 50%. On those metrics, the article calls NVDA the stronger business.

Valuation drives the conclusion. After a near-tripling, AMD looks expensive, per the article, while NVDA's smaller 23% gain leaves it undervalued. That combination is why the piece labels NVDA the safer holding.

Interpretation: the market is paying up for AMD's momentum even though NVDA leads on the two fundamentals cited. A nearly 3x move with slower expected growth and thinner margins leaves AMD more exposed if the rally loses steam. NVDA's lagging 23% gain suggests less priced in, though the article offers no price target to quantify the gap.