Nvidia or AMD: Billionaire Ken Fisher Tilts Toward One Top AI Stock

The AI trade may not be quite as euphoric as it was a few months ago. Investors have begun taking a closer look at valuations across the sector, questioning whether the enormous spending on AI infrastructure will ultimately deliver returns that justify the scale of the investment.

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Yet, billionaire investor Ken Fisher argues that the real story isn’t AI’s potential, but the overheated narrative that has formed around it.

“AI has gone fully hyperbolic,” said the Fisher Investments’ executive chairman and co-chief investment officer. “Not the stocks or investment profits – though they surely leapt in recent years. The chatter, hype, extreme claims. ‘Headlines herald an impending ‘tsunami,’ ‘adapt-or-die’ moments and looming ‘apocalypses’ for jobs, industries… even humanity. Reality check: understanding AI’s investment implications means muting hype and fathoming the Four ‘n’s’: nuance, necessity, newness and nuisance.”

In a nutshell, Fisher says to put hyperbole aside and focus instead on nuance – major technological shifts rarely unfold as simple either/or outcomes. Secondly, its efficiency alone likely makes it a necessity. Newness speaks for itself, really. Lastly, today’s fears and exaggerated expectations are little more than a nuisance.

Maybe Fisher should have added a 5th ‘n’ that represents Nvidia (NASDAQ:NVDA). The semi giant has famously become the world’s most valuable company by being the best AI chipmaker out there and it’s no surprise to find it takes up room in Fisher’s portfolio alongside another AI chip stalwart – Advanced Micro Devices (NASDAQ:AMD).

But recently, Fisher, who has a net worth of $13.2 billion, has been tilting toward one of these names while reducing his exposure to the other. So, let’s take a closer look at the pair and see why Fisher is showing more confidence in one of these names over the other right now.

Nvidia

The surge of interest in AI really kicked off with the release of ChatGPT in November 2022, which helped bring the technology into the mainstream. In truth, AI had been advancing steadily behind the scenes for years. However, the chatbot’s rapid adoption made those developments far more visible, introducing businesses and the broader public to the practical potential of AI.

Almost immediately, Nvidia stood out as a major early beneficiary. That’s because the massive AI models behind tools like ChatGPT require enormous computing power to train and run and Nvidia’s GPUs – originally designed for gaming – turned out to be perfectly suited for the heavy mathematical workloads used in machine learning.

As companies raced to build their own AI systems, demand for those chips surged, driving a sharp rise in Nvidia’s data center revenue. That led to massive share gains, and that ultimately turned the company into the market leader it is today.

But the Jensen Huang-led firm hasn’t taken its foot off the gas, and each new generation of its hardware has introduced new capabilities. However, it should be noted that Nvidia is not just a hardware specialist. Over the years, it has also built a powerful software ecosystem around its chips, most notably its CUDA platform, and that has become a crucial part of its advantage over rivals. Tools, libraries, and frameworks built around its platform make it easier for researchers and companies to develop and run AI models on Nvidia hardware. Essentially, the company sells not only the chips that power modern AI systems, but also the software environment that helps make those systems possible.

As for billionaire Ken Fisher, he must believe the company will continue to be a dominating AI force. In 4Q25, Fisher Investments added to its holdings another 1,493,962 NVDA shares, a stake currently worth over $265 million.

That investment will make sense to Tigress Financial analyst Ivan Feinseth, who highlights the various reasons why investors should get behind the AI chip king.

“As Blackwell (GPU architecture) ramps into volume at hyperscalers, enterprises, and sovereign AI projects, and future Rubin/Vera Rubin and Feynman‑class architectures further lower inference cost per token and boost throughput, NVDA sustains an ongoing AI capital investment cycle that widens its moat and supports premium pricing. CUDA, cuDNN, and a broad library of AI frameworks and SDKs underpin millions of developers and thousands of enterprise applications, creating very high switching costs and long‑term customer retention,” Feinseth opined.

“Enterprise offerings, including NVDA AI Enterprise and vertical stacks for healthcare, industrial digital twins, and robotics, open recurring software and services revenue on top of hardware sales. Omniverse and industrial digital twins drive demand for GPUs and AI in design, simulation, and factory optimization, tying physical‑world use cases back into the core data center stack,” Feinseth added.

To this end, Feinseth rates NVDA shares a Buy, while his Street-high $360 price target suggests the stock could double over the next 12 months. (To watch Feinseth’s track record, click here)

Almost all of Feinseth’s colleagues back that stance; based on a mix of 39 Buys vs. 1 Hold, the stock claims a Strong Buy consensus rating. Going by the $272.16 average price target, a year from now, shares will be changing hands for a 51% premium. (See Nvidia stock forecast)

AMD

Nvidia remains the dominant player in AI chips, but AMD is a company looking to challenge that dominance. While its background in CPUs meant Nvidia had a headstart in the GPU space, AMD has been working hard to close that gap and has nabbed some very eye-catching deals over the past few months.

One such deal is with OpenAI, the company behind ChatGPT. In October, AMD signed a multi‑year agreement to supply AI GPUs that can handle about six gigawatts of compute power, with the first systems using their Instinct MI450 GPUs rolling out in the second half of 2026. The deal could bring in tens of billions of dollars, and it even gives OpenAI the option to acquire up to 10% of AMD’s shares if certain milestones are met.

Not long after, AMD landed an even bigger partnership with Meta. Announced in February, this deal will see AMD supplying up to six gigawatts of Instinct GPUs and EPYC CPUs to power Meta’s next-generation AI infrastructure. The contract could be worth around $60 billion over five years, making it the largest chip supply deal in AMD’s history. Like the OpenAI deal, it includes performance-based stock options that could let Meta pick up to a 10% share of AMD if everything goes according to plan.

On top of these marquee agreements, AMD’s Instinct GPUs – especially the MI300 and the upcoming MI450 – are already being deployed by hyperscale cloud providers like Microsoft Azure and Oracle Cloud, along with specialized AI infrastructure firms. With all this taking place, AMD is positioning itself as a serious challenger to Nvidia, with potential revenue from these AI deals likely stretching well into the tens of billions, and possibly over $100 billion across several years.

However, there is both execution and customer concentration risk involved here, and maybe Fisher’s latest moves point to a cautious approach. During Q4, his firm sold 55,231 AMD shares, offloading a chunk of its holdings.

Goldman Sachs analyst James Schneider will certainly understand that move. While hailing the Meta deal as a sound one, he also advocates caution right now. “We view this announcement as a substantial positive for AMD, as it provides greater certainty on the company’s market share position with the Tier-1 hyperscaler, with incentives for Meta to use AMD given both equity ownership and product customization,” the 5-star analyst said before adding, “We are Neutral on the stock given AMD’s significant exposure to OpenAI and elevated OpEx, but could consider a more constructive stance if we gain additional confidence into the timing of deployments at Meta and OpenAI through 2027.”

That Neutral rating is backed by a $240 price target that still points toward 12-month returns of ~22%. (To watch Schneider’s track record, click here)

7 other analysts also remain AMD skeptics, but with an additional 23 Buys, the analyst consensus rates the stock a Moderate Buy. The forecast calls for a one-year share appreciation of 45%, considering the average price target clocks in at $286.04. (See AMD stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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