A big chunk of the S&P 500 has already reported 2025 Q4 results, though the reporting docket remains stacked for weeks to come. We've already heard from six of the Magnificent Seven members, with NVIDIA (NVDA) the only one yet to report from the beloved group.
A peer to NVIDIA, namely Advanced Micro Devices (AMD), has already delivered its results, with the stock facing pressure post-earnings. AMD shares have lagged relative to NVDA over the past three months by a fairly wide margin.
Were AMD's results bad, or was it more a reflection of profit-taking after a big run over the past year? And what can investors expect from NVIDIA earnings? Let's take a closer look at the results from AMD and expectations for NVDA.
AMD Earnings
AMD's results were positive across the board, breaking records across many key metrics. Q4 revenue grew by 34% year-over-year to a record $10.3 billion, and importantly, Data Center revenue of $5.4 billion also reached a new all-time high. Both metrics clearly paint a strong demand picture for the company, underpinned by the broader AI frenzy that won't be slowing anytime soon.
The overall revenue acceleration over recent periods can be seen below. Please note that the chart below does not show actual sales figures but rather the YoY growth rates.
Sales acceleration is a key factor in share outperformance, particularly so for stocks involved in the AI trade. The sales acceleration paired with favorable sales revisions for its upcoming period (2026 Q1) reflects a notably bullish pairing, with the $9.7 billion expected in the next release suggesting a 32% YoY growth rate.
The company's EPS outlook for the upcoming release (2026 Q1) is also bullish, with the current $1.27 Zacks Consensus EPS estimate up 7% since mid-November and suggesting 33% YoY growth. The outlook for shares continues to remain bright, with the recent weakness in shares post-earnings also giving shares a nice, healthy breather after a massive run.
The valuation picture here isn't overly rich, either, relative to its history, with the current 31.0X forward 12-month earnings multiple well off the 38.0X five-year median. The current multiple reflects a 34% premium to the S&P 500, reflecting investors' above-average growth expectations but remains well below the 77% five-year median premium.
NVIDIA Earnings Expectations
NVIDIA is always a 'late reporter' in the earnings cycle, with its results coming well after many of the notable tech players. EPS and sales revisions for the upcoming release, expected on Feb. 25th after the close, have remained both stable and bullish since mid-November, up by 3.4% and 2.5%, respectively.
While no upward revisions have occurred since the beginning of the new year, the stability here is a big positive.
Concerning the Data Center, undoubtedly the most important metric for NVIDIA nowadays, the Zacks Consensus estimate stands at $58.7 billion, suggesting a 65% YoY growth rate. Keep in mind that NVDA has regularly exceeded our consensus estimate over recent periods, penciling in five beats over the last six quarters.
Shares aren't rich by any stretch despite the massive run, with the current 25.8X forward 12-month earnings multiple nearly half of the 41.3X five-year median while reflecting just a 12% premium relative to the S&P 500. Keep in mind that shares traded well above current valuation levels in 2021 and 2022 when the AI theme had not yet been fully recognized by the market.
Putting Everything Together
Both stocks reflect great options for those seeking AI exposure, though it's undeniable that NVIDIA (NVDA - Free Report) remains the leader of the pair, underpinned by CUDA, its software platform that has let developers use GPUs for general computing, not just graphics. It was launched way back in 2006, providing a big head start.
Advanced Micro Devices (AMD) remains a powerhouse in its own right, but it continues to trail NVIDIA, particularly in market penetration. NVIDIA currently ranks as a Zacks Rank #2 (Buy), whereas Advanced Micro Devices is currently a Zacks Rank #3 (Hold).