Big News for Nvidia Stock Investors | NVDA Stock Analysis

Parkev Tatevosian, CFA•Jul 24, 2026

Summary

Parkev discusses a major performance update from Nvidia regarding its next-generation Vera CPU, which demonstrates a 1.9-times performance advantage over AMD's Epic Turin processor in agentic AI benchmarks. Parkev observes that while AMD and Intel have received much of the credit for CPU growth in the data center, Nvidia's standalone CPU is proving to be a formidable competitor. This technological advancement is expected to be a major catalyst for Nvidia's sales and profits over the next two years.

Parkev highlights a massive valuation discrepancy in the semiconductor market, noting that Nvidia is trading at a forward price-to-earnings ratio of 16.14, whereas AMD is trading at 40. Parkev believes this premium for AMD is unjustified because Nvidia possesses a better overall business model, superior revenue growth, and higher profit margins. Parkev predicts a convergence in stock performance where Nvidia will close the gap with competitors who have seen much larger gains in 2026.

NVDA: Parkev argues that Nvidia is an exceptionally attractive investment because it is trading at less than half the valuation of AMD despite having superior competitive advantages. Parkev notes that the stock is currently priced at $207, but his discounted cash flow model suggests a fair value of $305 per share. Parkev expects the new Vera CPU performance data to act as a catalyst that finally aligns Nvidia's stock performance with the rest of the soaring semiconductor sector.

AMD: Parkev notes that AMD has seen a massive 144% stock price surge in 2026, which has pushed its valuation to a forward P/E of 40. While Parkev previously recommended AMD as a buy when it was $190, he now believes the current price premium over Nvidia is stretched and likely to undergo a correction or slower growth. Parkev argues that investors are giving AMD too much credit for data center CPU growth while ignoring Nvidia's superior benchmark results in the same category.

Mentioned Stocks

NVDA

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev calculates a fair value of $305 for Nvidia based on a DCF model, representing significant upside from the current $207 price. Parkev highlights that Nvidia's Vera CPU outperforms AMD's offerings by 1.9x in agentic AI benchmarks, yet Nvidia trades at a much lower forward P/E of 16.14 compared to AMD's 40. Parkev believes Nvidia is a better business with superior margins and expects the stock price to close the performance gap with its peers.

Loading chart...

AMD

Sentiment: HOLD

Reasoning: Parkev notes that while he previously ranked AMD as a buy at $190, the stock's 144% surge in 2026 has led to a valuation premium that he considers 'stretched.' He argues that AMD's forward P/E of 40 is more than double Nvidia's valuation, which is not justified given Nvidia's competitive advantages in the CPU space. Parkev expects the stock performance between AMD and Nvidia to converge, suggesting AMD's relative outperformance may slow.

Loading chart...