Advanced Micro Devices vs. Alphabet: What Do the Revenue Trajectories of These Artificial Intelligence Companies Tell Investors?
Key Points
Alphabet consistently generates much higher revenue than Advanced Micro Devices, maintaining a substantial lead across all observed periods.
Both companies show a general upward trajectory in revenue over the last eight periods, though Alphabet experiences more seasonal quarter-over-quarter fluctuations than its counterpart.
Investors should watch whether the significant revenue gap between the two companies continues to widen or stabilizes in upcoming quarters.
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Advanced Micro Devices: Steady Revenue Increases
Advanced Micro Devices (NASDAQ:AMD) primarily generates its revenue by selling microprocessors and graphics processing units to original equipment manufacturers, public cloud service providers, and other enterprise clients.
It recently launched new EPYC processors alongside high-capacity deployment agreements, and it reported a 14% net income margin for the quarter ended March 28, 2026.
Alphabet: Sustained Revenue Scale
Alphabet (NASDAQ:GOOGL) earns most of its revenue through digital advertising services, cloud computing infrastructure, and the sale of various consumer hardware devices.
While facing development delays with a new generative model and increasing its capital expenditure guidance, it reported a 34% EBIT margin for the quarter ended June 30, 2026.
Why Revenue Matters for Retail Investors
Revenue shows investors how much total money a company brings in before accounting for any operating expenses, taxes, or other costs, serving as a baseline measure of a business's top-line growth.
Quarterly Revenue for Advanced Micro Devices and Alphabet
| Quarter (Period End) | Advanced Micro Devices Revenue | Alphabet Revenue |
|---|---|---|
| Q3 2024 | $6.8 billion (period ended Sept. 2024) | $88.3 billion (period ended Sept. 2024) |
| Q4 2024 | $7.7 billion (period ended Dec. 2024) | $96.5 billion (period ended Dec. 2024) |
| Q1 2025 | $7.4 billion (period ended March 2025) | $90.2 billion (period ended March 2025) |
| Q2 2025 | $7.7 billion (period ended June 2025) | $96.4 billion (period ended June 2025) |
| Q3 2025 | $9.2 billion (period ended Sept. 2025) | $102.3 billion (period ended Sept. 2025) |
| Q4 2025 | $10.3 billion (period ended Dec. 2025) | $113.9 billion (period ended Dec. 2025) |
| Q1 2026 | $10.3 billion (period ended March 2026) | $109.9 billion (period ended March 2026) |
| Q2 2026 | Not yet reported | $119.8 billion (period ended June 2026) |
Data source: Company filings. Data as of July 24, 2026.
Foolish Take
The revenue trends of Advanced Micro Devices (AMD) and Google parent Alphabet reveal both are experiencing consistent year-over-year sales increases. That said, AMD is seeing faster growth. For instance, in its fiscal first quarter ended March 28, AMD’s sales grew by 38% year over year to $10.3 billion. In Q1, Alphabet’s revenue rose 22% compared to 2025, although its growth rate accelerated to 24% year over year in Q2.
AMD’s faster sales growth illustrates the key role its products serve in the artificial intelligence sector, and the level of customer demand involved. In fact, the company forecasted Q2 revenue to reach $11.2 billion, which represents a further acceleration to 45% year-over-year growth.
AMD’s sales look likely to continue its revenue expansion trajectory. On July 22, the company announced a new deal with AI giant Anthropic, and a separate announcement of an expanded partnership with Microsoft on July 20.
Alphabet’s incorporation of AI into Google has resulted in exceeding one billion monthly active users. This indicates the search engine giant is not losing customers to competitors. Its sales may not be rising as fast as AMD, but its 24% growth in Q2 shows Alphabet continues to benefit from an expanding business. Its Google Cloud division saw the greatest increase as revenues jumped 82% year over year to $24.8 billion.
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Robert Izquierdo has positions in Advanced Micro Devices and Alphabet. The Motley Fool has positions in and recommends Advanced Micro Devices and Alphabet. The Motley Fool has a disclosure policy.
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