Morgan Stanley Says Nvidia Tops Amd in AI Chip Race
Morgan Stanley analyst Joseph Moore said Nvidia has a clearer advantage than amd in the AI race. He said Nvidia has more room to run, with market share in this environment tied more to supply chain than branding. That puts the stock’s next move in the same frame as factory output, not just chip demand.
Joseph Moore on Nvidia
Moore said, "NVIDIA has consistently put up more upside to quarterly guidance than either of these competitors, and while just how strong 2027 is remains to be seen, we believe that NVIDIA’s forecast leaves the most room for upside in the base case. Market share in this environment has more to do with supply chain, and we increasingly see potential for bottlenecks in other parts of the supply chain may actually bring preference to". He also said Nvidia’s forecast leaves the most room for upside in the base case. For investors, that is a narrower call than a broad AI thesis.
Nvidia’s 2026 numbers
Nvidia generated $68.1 billion in revenue in fiscal fourth quarter 2026. Its data center revenue reached $62.3 billion. That segment accounted for more than 91% of total sales, which shows how dependent the company remains on AI infrastructure demand.
Nvidia’s overall revenue climbed 73% year over year in fiscal fourth quarter 2026. Its data center segment surged 75%. Non-GAAP earnings reached $1.62 per share, nearly double the $0.89 from the same quarter last year and 8 cents above consensus estimates.
SOX and supply chains
The Philadelphia Semiconductor Index, or SOX, rose about 50% in the last 30 days and 164% over the past 12 months. That rally has spread across memory makers, networking suppliers, data center hardware companies, and equipment manufacturers. The comparison between Nvidia and Advanced Micro Devices now sits inside a much wider rush for AI servers and next-generation data centers, with Microsoft, Amazon, Alphabet, and Meta still committing hundreds of billions of dollars to build them.
The harder question for AMD holders is not whether AI spending is real. It is whether supply-chain bottlenecks and Nvidia’s deeper guidance upside keep widening the gap between the two names, while Nvidia already stands at a $5.23 trillion market cap and remains the world’s most valuable publicly traded company.
