Is AMD Even a Real Threat to Nvidia or Just a Pricing Lever?
AMD just posted record Data Center revenue and claims its Helios racks deliver cheaper tokens than anything NVIDIA sells. Whether that disrupts the world's most dominant AI platform or just keeps hyperscalers from paying full price is the question every…
AMD (NASDAQ:AMD | AMD Price Prediction) and NVIDIA (NASDAQ:NVDA) both reported summer quarters showing AI demand lifting everything it impacts. AMD posted record revenue as its Data Center sales more than doubled. NVIDIA grew even faster from a far larger base. Are AMD’s Helios racks a real threat to NVIDIA’s platform, or do they mainly give buyers leverage on price?
Helios Is AMD’s Opening Shot While Vera Rubin Already Ships
AMD’s revenue rose 50.1% to $11.54B. Data Center sales reached $6.72B, or 58% of revenue, so AMD now runs mostly as a server company. EPYC delivered a fifth consecutive quarter of record server CPU revenue. Lisa Su said “Customer pull for Helios is very strong and tracking ahead of our initial forecasts.”
NVIDIA’s Data Center unit produced $89.02B, up 117%. Networking alone brought in $40.31B, more than AMD’s entire quarterly revenue. That shows how much of the rack NVIDIA already controls.
| Business Driver | AMD | NVIDIA |
|---|---|---|
| Main Growth Engine | EPYC CPUs, Instinct MI350 | Blackwell Ultra, networking |
| Next Platform | Helios, shipping from Q3 | Vera Rubin, in full production |
| Non-GAAP Gross Margin | 56% | 75.0% |
| Next-Quarter Revenue Guide | ~$13B | $108B +/- 2% |
Cheaper Tokens Take On a Platform That Runs Everything
AMD’s pitch is about economics. It claims Helios delivers “up to 30% more tokens per dollar than the competition” and packs more memory per rack. Su added a caution: “The benefit of the memory is workload dependent.” CFO Jean Hu also warned that data center AI gross margin could come in slightly below the corporate average. AMD is effectively buying share with margin.
Jensen Huang pitches range instead: “NVIDIA is a platform, an entire AI factory platform that spans the entire AI lifecycle that you can use in any cloud.” He also said “we have supply for 70%” of demand. That shortfall is AMD’s opening. Customers stuck waiting for NVIDIA hardware have a reason to sign gigawatt deals with Anthropic-style terms elsewhere.
Helios Shipments Will Show Whether the Threat Is Real
Su laid out the timeline: “Q3 is the very beginning of the ramp. Q4 is a step up.” Anthropic’s first gigawatt starts in the first half of 2027. I will be watching Helios yields closely. NVIDIA, for its part, guided Q4 gross margin to 71% to 72% as memory costs rise.
Investors have already priced in a lot. AMD shares are up 182.75% year to date, compared with 22.82% for NVIDIA. Recent AI announcements from both failed to re-energize investors.
Why I See AMD as a Real Second Source With a Steep Price
I think AMD is a credible second source for AI infrastructure. OpenAI, Meta Platforms (NASDAQ:META), Anthropic and Microsoft (NASDAQ:MSFT) are committing gigawatts, and that kind of commitment signals a long-term supply relationship. Still, AMD trades at about 228 times earnings, while NVIDIA trades near 46 with far fatter margins. NVIDIA pairs a lower multiple with a deeper ecosystem and fatter margins. AMD carries product-launch risk alongside greater growth potential. My view changes if Helios volumes slip into late 2027.
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Alex Sirois is a financial writer with experience spanning both retail and institutional investing. He has written for InvestorPlace and held roles at BNY Mellon and Bernstein, giving him a perspective that bridges Main Street portfolios and Wall Street analysis.
Alex holds an MBA from George Washington University and has built his career across multiple industries, including e-commerce, education, and translation — a breadth of experience that informs how he breaks down complex financial topics for everyday investors. His writing is conversational, actionable, and grounded in long-term, buy-and-hold investing principles.
At 247 Wall St., Alex focuses on delivering analysis that is both accessible and useful, with a clear emphasis on helping readers make more informed decisions with their money.
