NewsDialy
The stock market is pricing one chip company as if it will need to double its earnings again after next year just to justify today's share price, even though its larger rival is already growing faster.
That pricing dynamic centers on the forward price-to-earnings multiple: the ratio of a stock's current price to its projected future earnings.
By that measure, Advanced Micro Devices (NASDAQ: AMD) would trade at 33 times expected 2027 earnings at current prices, while Nvidia (NASDAQ: NVDA) trades at 17.6 times the same period.
The stock is up roughly 125% in 2026 and about 300% since the start of 2025. Nvidia is up around 20% this year and 67% over the same stretch.
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