AMD Just Crushed Nvidia by 32 Points After Scandal. Here’s How NVDA Can Come Back
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AMD (NASDAQ:AMD | AMD Price Prediction) or NVIDIA (NASDAQ:NVDA): after one of the most lopsided weeks in the competition between these two chipmakers, how do they compare for investors building a retirement portfolio? The Kobeissi Letter called AMD’s run its greatest five-session outperformance against Nvidia since Nvidia’s 1999 IPO. On verified closing prices for the week ended November 13, 2026, AMD rose 18.93% while NVIDIA fell 12.75%, a 31.68-point spread. Year to date, AMD is up 149.37% and NVIDIA is down 12.48%.
NVIDIA opened an independent investigation following reports its CEO Jensen Huang had a relationship with a suspected Chinese spy, and Commerce Secretary Lutnick will testify before the Senate Banking Committee. NVIDIA shares have dropped 26.41% in a month, closing at $162.85. AMD closed at $534.06.
Valuation: NVIDIA Is Now the Cheaper AI Stock
The selloff flipped the valuation math in NVIDIA’s favor. NVIDIA’s trailing earnings multiple is 33. AMD’s multiple is 202. NVIDIA’s free cash flow yield is 2.46% against 0.76% for AMD, and its earnings yield is 3.05% against 0.49%. AMD’s price already assumes years of flawless execution. Winner: NVIDIA.
Growth Trajectory: AMD Is Speeding Up
AMD’s third quarter delivered revenue of $13.377 billion[1], up 44.68%, with non-GAAP EPS of $2.09, beating the $1.94 consensus. Data Center sales reached $8.546 billion[1], up 97%, as Anthropic, Meta, Microsoft, OpenAI and Oracle brought Helios racks online. Fourth-quarter guidance calls for about $17 billion[1], roughly 66% year-over-year growth, and management expects revenue to grow more than 80% in 2027[2]. Lisa Su said “Data center revenue growth has accelerated sequentially every quarter this year.”[2]
NVIDIA is far larger: second-quarter fiscal 2027 revenue was $96.221 billion[3], up 105.85%. Its fiscal 2028 outlook, however, calls for growth of about 70%[4], limited by supply. AMD’s growth rate is rising while NVIDIA’s is moderating. Winner: AMD.
Quality and Risk: NVIDIA’s Margins Set the Standard
NVIDIA posts a 71.1% gross margin, a 60.4% operating margin and a 101.5% return on equity. AMD’s figures are 49.5%, 10.7% and 7.19%. NVIDIA generated $21.341 billion[3] of free cash flow last quarter and returned a record $26 billion[4] to shareholders, with about $99 billion left on its buyback and a $0.25 quarterly dividend. AMD pays no dividend, and its free cash flow fell 70.86%[1] to $554 million as inventory climbed to $11.463 billion.
NVIDIA carries real risks: “there is no China data center compute revenue in our forward outlook,”[4] and margins are expected to bottom at 71% to 72% in the fourth quarter. Even after those risks, its profitability sits on a different level from AMD’s. Winner: NVIDIA.
Verdict: Nvidia Has the Stronger Investment Case
NVIDIA wins two of three categories, and the two it wins matter most for retirement money. A portfolio built for capital preservation and steady compounding benefits more from a 33x multiple, industry-leading margins and consistent buybacks than from a 202x stock whose cash flow is being absorbed by inventory. AMD carries higher volatility, with drawdowns like its 8.75% drop on November 13 alone.
NVIDIA’s recovery path runs through three milestones: a clean result from the independent investigation, delivery against its $108 billion[3] third-quarter revenue guide, and a Vera Rubin ramp expected to supply about 20% of data center revenue in Q3[4]. Huang framed the constraint simply: “Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%.”[4] The scandal knocked the stock down, and NVIDIA’s earnings and cash flow give it the stronger case for recovery. The same Helios and Vera Rubin expansion also has to be powered, cooled and networked by somebody, and we featured seven of those suppliers in a free report on the AI boom beyond the chipmakers.
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After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years, he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, Money Morning, and, of course, 24/7 Wall St. He has been featured in both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.
