- Wednesday, October 16, 2024
Nvidia Reaches $800, While AMD Emerges as Hot AI Play
Nvidia's stock was on the rise in premarket trading, nearing the $800 mark. However, Advanced Micro Devices (AMD) seems to be the current standout in the artificial intelligence chip sector.
Market Performance
- Nvidia shares saw a 1.2% increase, reaching $800.90 in premarket trading.
- Advanced Micro Devices surged by 3.2% to $198.75, after a 9% increase the previous day, surpassing a $300 billion market valuation for the first time.
AI Server Demand
So why is AMD shining brighter than Nvidia for the moment? Dell Technologies mentioned sturdy orders for hardware equipped with chips from both AMD and Nvidia, emphasizing the growing AI server demand.
This positive development in AI server demand seems to be encouraging to investors, especially when it comes to AMD's market potential.
Analyst Insights
Melius Research analyst Ben Reitzes highlights AMD's potential growth in the AI market due to recent orders for the AMD-made MI300X chips receiving attention from Dell. Reitzes believes that traditional server CPUs supporting AMD margins will further elevate its Data Center segment.
Market Trends
- Nvidia's stock has shown an impressive 60% increase this year, surpassing the S&P 500 and Nasdaq Composite.
- AMD's recent performance indicates a promising future in the AI chip market.
In conclusion, while Nvidia continues to dominate, AMD's recent advancements suggest a potential shift in the AI chip landscape.
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