What’s Going On With AMD Stock?

NVIDIA Corp’s earnings report Wednesday after-hours could have large implications for Advanced Micro Devices, Inc. AMD, a key competitor in the semiconductor space and a rising player in AI hardware.

Nvidia’s dominance in AI chips has set the market’s standard, and its performance may either validate or challenge AMD’s strategic push into this lucrative area.

What To Know: AMD has been aggressively targeting the AI accelerator market, launching its MI300 series chips aimed at competing with Nvidia’s market-leading GPUs.

A strong Nvidia report, highlighting continued AI demand and robust sales, could bode well for AMD by reinforcing confidence in the sector’s growth potential. This would bolster expectations for AMD’s forthcoming AI products and validate the company’s investments in next-generation AI technologies.

However, a disappointing Nvidia report could raise concerns about market saturation or slowing AI investments, potentially dampening enthusiasm for AMD’s own growth narrative. Investors will be particularly attuned to Nvidia’s guidance on demand for AI infrastructure, as it directly impacts the opportunity space AMD is trying to penetrate.

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AMD also faces the risk of unfavorable comparisons. Nvidia’s dominant market share and ability to scale its AI solutions more efficiently may highlight challenges AMD could face in gaining meaningful traction against its rival.

With Nvidia options pricing in significant volatility, AMD’s stock could see sympathetic moves as investors reassess AI-related growth across the semiconductor industry.

For AMD, Nvidia’s results are not just a benchmark but a critical signal for its trajectory in the competitive AI chip race.

What Else: AMD shares rose Monday following its collaboration with IBM to integrate AMD Instinct MI300X accelerators into IBM Cloud, enhancing performance for generative AI and enterprise computing and supporting platforms like Watsonx AI and Red Hat Enterprise Linux.

The accelerators, set for release in 2025, aim to help enterprise clients optimize costs and scalability for AI applications.

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Investors can gain exposure to AMD by investing in the VanEck Semiconductor ETF SMH or the Invesco QQQ Trust, Series 1 QQQ.

Is AMD A Good Stock To Buy?

Wall Street analysts view Advanced Micro Devices on the whole as an Outperform, given the history of coverage over the past three months. Harsh Kumar from Piper Sandler in Advanced Micro Devices is the most optimistic, expecting a 14.29% rise in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Advanced Micro Devices fell 12.95%, which indicates that opinion soured on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 17.57% over the past year.

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AMD has a 52-week high of $227.30 and a 52-week low of $116.37.