Advanced Micro Devices was hit after analysts at Morgan Stanley downgraded the chip maker's stock to Equal Weight from Overweight.
The artificial intelligence “bar remains high” for Advanced Micro Devices, and investors are better off with bigger names like Nvidia, say Morgan Stanley analysts who downgraded the chip maker.
AMD is projected to gain market share from Nvidia in 2024 and has strong growth potential in the AI chip market, at least until FY26. Maturity and evolution of ML models expected from this year onwards will aid in TAM penetration. Advanced Micro Devices now expects $4 billion from the sales of MI300 series AI chips alone. AMD's product roadmap in Computex 2024 and the switch to annual release cycles to put AMD in a better position to compete with Nvidia.
Nvidia stock has risen tremendously in the last 12 months, leading to fears that it is too late to buy. AMD, on the other hand, has grown far less rapidly.
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Advanced Micro Devices could get more recognition for its artificial-intelligence chips in the second half of the year, according to Melius Research.
Advanced Micro Devices Inc. (AMD, Financial) has solidified its position as a key player in the semiconductor industry through its strategic initiatives and robust product portfolio. Leveraging technological advancements and continuous product innovation, the company has expanded its reach globally, capturing a diverse audience of users, developers and advertisers.
AMD and Nvidia each supply GPUs for data centers. Nvidia's GPUs are industry-leading.
Technologies with the power to change the world come along every so often. Artificial intelligence (AI) is one of the most powerful world-changing technologies of the past several decades, and perhaps ever.
Nvidia just discovered its next multibillion-dollar product in the burgeoning AI market. Advanced Micro Devices' new AI chip is seeing robust demand.
Big chipmakers have been racing to introduce new-generation artificial intelligence (AI) chips.