From this perspective, AMD's stock looks far more expensive than Nvidia's, which it is. However, both companies are undergoing strong growth, and AMD's profit picture is set to improve throughout 2025, so using a forward P/E ratio is also a good idea.

Preparing for Nvidia's earnings? Explore important information about the stock's performance and upcoming report.

Nvidia’s data-center sales could disappoint in the first half of the year but that's not a reason to sell the stock, according to Mizuho analysts.