Better Semiconductor Stock During the Crash: Nvidia or AMD?

By Lyle Daly – Mar 24, 2026 at 5:01PM ESTKey PointsNvidia grew its revenue more than AMD over the last year.However, AMD is doing well financially and has increased its CPU market share.No semiconductor company has been as successful as Nvidia (NVDA 0.33%) over the past three years or so, but recently, Advanced Micro Devices (AMD +1.23%) has been the better investment. AMD stock is trading up 88% over the last year, as of March 20. Nvidia trails it with a still-impressive return of 46%. After the recent market turmoil, both of these semiconductor stocks are cheaper than they were at the start of the year. But which one is the better buy? Image source: The Motley Fool. Nvidia is still the winner in terms of sales growth, with $68.1 billion in revenue during the fourth quarter of its 2026 fiscal year, which ended Jan. 25, 2026. That was a 70% year-over-year increase. AMD's revenue increased 34% to $10.3 billion in the fourth quarter of its 2025 fiscal year, which ended Dec. 27, 2025. Nvidia also has better gross margins at 75% compared to 54% for AMD, due to Nvidia's dominance over the GPU market and its widely used CUDA software ecosystem. That said, there are also reasons to be bullish about AMD. While Nvidia focuses more on GPUs, AMD has a growing share of the CPU market -- up to 29.2% as of Q4 2025. It has announced strategic partnerships with OpenAI and Meta Platforms in the last six months, and it has a price/earnings-to-growth (PEG) ratio under 0.5 over the trailing 12 months, even lower than Nvidia. PEG ratio is a way to value a stock based on its earnings growth, and lower is better, with anything under 1 normally considered undervalued. ExpandNASDAQ: NVDANvidiaToday's Change(-0.33%) $-0.57Current Price$175.07Key Data PointsMarket Cap$4.3TDay's Range$173.99 - $176.2152wk Range$86.62 - $212.19Volume4.4MAvg Vol175MGross Margin71.07%Dividend Yield0.02% If you could only invest in one of these tech stocks, Nvidia would still be my recommendation, based on its incredible revenue growth and GPU market share. But there's nothing precluding you from buying both, and that's the better option if you want to capitalize on each company's success.Read NextMar 24, 2026 •By Keithen DruryMarch's Most Compelling Artificial Intelligence (AI) Stock PickMar 24, 2026 •By Leo SunThe Artificial Intelligence (AI) Trade Is Splitting in Two. Here's How to Pick the Right Side in 2026.Mar 24, 2026 •By John BromelsNvidia's $20 Billion Groq Acquisition Just Paid Off.

This New Chip Could Change the AI Inference Game in 2026.Mar 24, 2026 •By Daniel FoelberNvidia Stock Could Become the Next Apple. Here's What It Means for Investors.Mar 24, 2026 •By Matt Frankel, CFPIs Nvidia Still Worth Buying After a 1,240% Run in 5 Years?Mar 24, 2026 •By Keith SpeightsNvidia's CEO Just Delivered Fantastic News for Investors in This Beaten‑Down AI StockAbout the AuthorLyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.TMFLyleDalyX@LyleDalyStocks MentionedNvidiaNASDAQ: NVDA$175.07(-0.33%)-$0.57Advanced Micro DevicesNASDAQ: AMD$205.18(+1.23%)+$2.50*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.