Nvidia and AMD: AI Stocks Set to Crush the Market by 2030

The artificial intelligence revolution is rapidly transforming the global economy, and investors are eager to capitalize on this growth. Experts predict that AI could add nearly $15.7 trillion to the global GDP by 2030. That said, two companies, Nvidia and AMD, are exceptionally well-positioned to outperform the broader stock market, like the S&P 500, in the coming years.

Nvidia's Dominance in AI Infrastructure

Nvidia has become a central player in the AI infrastructure space. The company's revenues surged 56% year-over-year, reaching $46.7 billion, according to the most recent reports. Specifically, data centers accounted for nearly $41.1 billion of this total.

Cloud providers and AI model builders increasingly rely on Nvidia's high-performance systems to train and run complex AI models. The company's annual release of new chip architectures provides a major competitive advantage. This also helps to create a loyal customer base, as enterprises are more likely to stay within Nvidia's ecosystem.

Nvidia's Strategic Partnerships and Technological Edge

Nvidia is also investing heavily in deploying significant AI infrastructure. The company has partnered with OpenAI to invest $100 billion in AI infrastructure powered by its Vera Rubin systems. Its Compute Unified Device Architecture (CUDA) software is also used by millions of developers.

Nvidia's networking business generated $7.3 billion in revenue in the last quarter. This showcases Nvidia's capabilities beyond GPUs into the full AI data center stack. Management estimates the global AI infrastructure market could reach $3 trillion to $4 trillion by 2030.

AMD's Growing Presence in AI

AMD is also emerging as a key player in the global AI infrastructure market. The company is demonstrating growing strength in both CPU and GPU markets. In the second quarter of fiscal year 2025, AMD's revenues increased 32% year-over-year to $7.7 billion.

Data Center revenues increased 14% to $3.2 billion. This growth was primarily fueled by strong demand for EPYC CPUs. These CPUs are essential for powering cloud and enterprise AI workloads, helping AMD gain ground in this competitive space.

AMD's Competitive Advantages and Future Prospects

The emergence of new AI applications is boosting demand for general-purpose computing infrastructure. Several major cloud providers have already deployed AMD's EPYC CPUs to power new cloud instances. Moreover, AMD is enhancing its software ecosystem with the launch of the open-source ROCm 7 stack.

While AMD lags Nvidia, it remains a crucial alternative in the AI infrastructure market. Experts believe its price-performance edge can help the company capture a growing share. AMD is also gearing up for the launch of the MI400 series and the Helios full-stack AI system in 2026, which could further boost its market position.

Valuation and Investment Considerations

Nvidia trades at 39.5 times forward earnings, while AMD trades at approximately 42 times forward earnings. These valuations reflect the market's expectation for continued growth and profitability. The AI boom is expected to continue, potentially making these companies strong performers in the stock market.