While Nvidia AI information centers are all the attention between companies that provide chips and equipment, and dozens of people who benefit from the expenditure of industrial hyperscalors. Advanced micro devices(NASDAQ: AMD) and Arista networks(NYSE: Arete) Both have seen their income thanks to the ongoing AI costs. But if you can get only one of them, AMD is currently stock.
Both companies work well with strong demand against a large runway such as products and AI costs. But the shares of AMD seem more attractive for many reasons. Here are the things that investors need to know.
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The AMD management sees the AI accelerator market, which covers GPU and a specially established silicon with more than $ 500 billion by 2028. This is more than 60% of 2025 to 2028.
For reference, AI training and result, CPUs, as well as CPUs, as well as the company’s Information Center Income from the company that is designed for CPUS, but also CPUs. Thus, although the management’s calculations are very high, it has a large number of growths for the work, although it seizes only a small slipper in this market.
And AMD is placed to seize the good part of that market. At the beginning of this month, a few new products presented in the progress of this month, including the instinct Mi350 series.
This will also compete with the RAF scale MI400, Nvidia’s Rubin, will compete with the Rubin line, said that 300 series of the Mi400 series planned to appear in the second half of 2026 will be 10 times stronger, he said.
With improved relative performance, AMD’s position is intensifying to NVIDIA to Hyperscalers. It is impossible not to get the market leader, but it is important for new founders Information centers If there is a lack of supply and to be an alternative to prevent excessive wear in a supplier.
The strong position in the AMD’s Information Center CPUs can also make a staple for years. By taking a consistent stake in the market, the information provides a durable and growing base for the center of the information.
However, this income probably shows that the NVIDIA does not grow this income until the main source of income for the GPUS segment. For example, the AMD’s information center revenues increased by 73% of NVIDIA increased by 57%.
The AMD’s shares are currently trading 37 times for advances. The first blend seems to be expensive, but earnings will be aggravated by the accusations associated with Chinese export control.
Without these headlines, analysts increase by 47% in 2026 and from there are more than 20% of the strong data center and more than 20% a year. Thus, only 24.5 times 2026 earnings expectations appear as an interesting investment opportunity.
Arista corrects the network keys that can be scale up to giant AI accelerator groups while maintaining high-data transfer speed.
When I came AI EducationThe data can get from one server to another, the level of delay is very large, because the cluster and AI models are exponentially raised as the larger growth. The company’s equipment provides limited time time for expensive AI accelerator chips hanging on Server racks of AI data centers.
The combination of high-level apparatus and its expandable operating system (EOS) gives the main competitive advantage of the ARISTA. The EOS facilitates the most of the equipment with AI-centered equipment such as the newly missed multitude of data operators – increases a majority of servers with a majority of traffic to avoid overlapping.
NVIDIA begins to participate in the Ariz’s market with the application of the counter-X network platform. The system is designed to work with GPU groups by taking advantage of the dominant position in the NVIDIA’s chip market.
However, the modular and programmable system of Ariza is more flexible, and the overhaul of all data centers is important. Thus, it is difficult to see that the company has lost its highest position in network equipment, especially the development of AI accelerator shopping.
Arista should take advantage of the best provider of Arista network key equipment as the AI accelerator rises to $ 500 billion and an estimate of the AI accelerators. With the majority of growth from the largest customers, investors should not expect a strong common margin.
Meanwhile, the company may have had to spend a lot of time to fade on marketing, research and development, to expose the competition that could restrict the Operating Arm. He said: “The benefits of Ariza’s profit are relatively high.
Expectations to save about 37 times in the stock trade, it makes it expensive as AMD. However, analysts do not see the same rising gain in the will of the AMD, and in the next three years, the average increase in only 18% of earnings is not making a profit. Thus, the price is more expensive for what you compare with AMD and it is worth waiting for the shares to go down before investing.
Thus, the investors who think that one of the best AI shares called NVIDIA will be able to be good with one of the closest competitors, AMD.
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Man levy There is no position in any of the marked shares. Motley has Foox positions and recommends advanced micro devices, arista networks and NVIDIA. Motley Fool has a Disclosure Policy.
