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3 problems for the stock price of Nvidia rival AMD

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Summary
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82% Informative

AMD 's stock price dropped 17% in 2016 , while Nvidia advanced 171% in 2024 .

AMD 's new AI chip, dubbed the MI300 , notched $1.5 billion in sales in the third quarter of 2024 .

Nvidia 's product pipeline — led by the new Blackwell chip now hitting markets — is viewed by the Street as being one year ahead of AMD in terms of artificial intelligence performance.

The outlook for the PC market in 2025 remains subdued at best.

AMD "continues to gain traction as the # 2 supplier of merchant accelerator solutions," Evercore ISI semiconductor analyst Mark Lipacis wrote.

"We like AMD ’s strategy, which we view to be similar to its (successful) CPU strategy vs. Intel and focused on optimizing its solution for the high-volume AI workloads".

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