Yahoo Finance analysts believe that despite NVIDIA's dominance in the AI sector and operating profit margins as high as 60%, AMD holds a valuation advantage. AMD's stock price has surged 143% year-to-date, compared to NVIDIA's 20% gain over the same period.

The analysis highlights that AMD's data center business revenue increased by 107% year-over-year, turning a loss into a profit of $2.1 billion. Furthermore, AMD has secured commitments for up to 2 gigawatts of MI450 GPUs from clients such as Anthropic. Given the continuous upward revisions of AMD's 2027 earnings per share estimates, analysts view its risk-reward ratio as more asymmetric and recommend a "buy."