Earnings are out today for $AMD and the stock is running up into the earnings results.
It’s been interesting seeing AMD valuations rise up over the last few months and for good reasons. Not only is their GPU sector firing on all cylinders via DataCenter and server demands but with the rise of agentic workflows, even CPU demands are through the roof for all such players including Intel.
But something has been bugging me about $AMD valuation and I could not help but compare it to its chief and probably largest rival Nvidia. Given $NVDA has mostly traded sidewards for the last few months, I knew it would be cheaper valuation wise in comparison to $AMD but one metric really surprised me. And that was the PEG ratio.
PEG ratio, in a sense, is a measure of the Price to Earning ratio of a company for a given unit of growth. So comparing two companies PEG ratio essentially has you asking per unit of growth, how much more am I paying for one versus the other? Or the other way of thinking about it, per unit of Price to Earning that I’m paying, how much growth am I getting?
AMD’s PEG as of Aug 4th, 2026 looks to be at 1.12 where as Nvidia’s PEG sits at 0.55.. To me, what that says is Nvidia is growing at twice the rate of AMD per unit of PE… Or perhaps another way to look at it, you are paying twice as much for the same growth with $AMD.
So let me ask you, how do you feel about that? Personally, I dont know yet, but I’m leaning toward not adding more of $AMD if I can or choosing $NVDA over $AMD right now if I have to.. Key words being “If I have to..”.. I say that because I realize this is not a winner takes all market. In a growing market size, we can have more than one player win and here, I fully expect both companies to win long term. So I’m not gonna necessarily pick one over the other. But I dont have to add to my positions either and I’m glad cause if I had to make that call right now, $AMD sure feels more expensive!