AMD Chips Away at Nvidia's AI Lead as Super Micro Stumbles
AMD stock (AMD) is creeping into territory long ruled by Nvidia (NVDA), and this week's market action hints it's no fluke. As Super Micro Computer's (SMCI) weak outlook spooked investors and Nvidia's momentum wobbled, AMD suddenly found itself in the right place at the right time.
Protect Your Portfolio Against Market Uncertainty
Super Micro Weakness Shakes Confidence in Nvidia
Super Micro Computer, one of the biggest names in AI server hardware, just missed the mark. The company warned investors that revenue would fall short due to 'delayed customer platform decisions,' a nod to hesitations around deploying Nvidia's latest Blackwell chips. These delays are giving customers pause — and for Nvidia, that's bad news.
When a major Nvidia-dependent player like Super Micro stumbles, it sends a message. Wall Street read it loud and clear. Nvidia stock slipped 1.7% in early trading. Super Micro dropped more than 3%. Both stocks are still up big this year, but the market is watching for signs the AI frenzy may be slowing — or diversifying.
AMD Grabs Attention With Competitive AI Chips
Meanwhile, AMD is starting to look like the real alternative. Its MI300X chip — a direct rival to Nvidia's H100 — is gaining ground fast. CEO Lisa Su said earlier this month that demand for the chip has been 'very strong,' and the company has already booked over $3.5 billion in AI accelerator revenue for 2024.
According to Wells Fargo, AMD may take share with its more flexible pricing and broader product lineup. They noted that 'AMD is positioned well for enterprise AI buildouts' especially as companies look to diversify beyond Nvidia.
Investors Brace for Meta and Microsoft Earnings
Now the focus shifts to Meta (META) and Microsoft (MSFT), who both report earnings this week. These companies are two of Nvidia's biggest customers, so any changes to their AI capital spending could tip the scales.
If Meta or Microsoft scale back server investments or signal a move toward multiple chip suppliers, AMD could benefit directly. The MI300X might not just be an option — it could become the hedge.
Is AMD Stock a Good Buy?
Analysts seem cautiously optimistic. On TipRanks, AMD holds a Moderate Buy consensus based on 34 analyst ratings—22 Buys and 12 Holds, with no Sells in sight. The average AMD price target is $139.13, suggesting a potential upside of 48.2% from current levels. The most bullish forecast sees AMD hitting $225, while the lowest sits at $95. That wide range shows there's still plenty of debate over how well AMD can compete in the AI chip race. But for now, Wall Street clearly isn't counting it out.
See more AMD analyst ratings
Disclaimer & Disclosure Report an Issue
This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
5 hours ago
- Globe and Mail
DELL's CSG Revenues Rise: Is an Improving PC Market the Catalyst?
Dell Technologies DELL AI prospects remain strong, with AI expanding from major cloud service providers to large-scale enterprise deployments and edge computing with PCs. Dell Technologies is a prominent PC maker and is expected to benefit from the recovering demand driven by the PC-refresh cycle. The company is benefiting from the Windows 11 PC refresh cycle as many enterprise customers upgrade to new AI-capable Windows 11 devices, driving strong demand in the commercial segment. In the first quarter of fiscal 2026, CSG revenues were $12.50 billion, up 5% year over year. DELL is also benefiting from an expanding partner base that includes NVIDIA, Microsoft, Meta Platforms and Imbue. In March, Dell Technologies and NVIDIA expanded their AI Factory collaboration, introducing new AI PCs, infrastructure, software, and services to accelerate enterprise AI adoption across various scales. Dell Technologies recently partnered with Lowe's to enhance customer and associate experiences by deploying advanced AI and PC technologies. Using Dell AI Factory with NVIDIA and high-performance Dell devices, Lowe's is optimizing inventory, improving asset protection, and streamlining store operations across its network. In March 2025, Dell Technologies and NVIDIA also expanded their AI Factory collaboration, introducing new AI PCs, infrastructure, software, and services to accelerate enterprise AI adoption across various scales. DELL Faces Stiff Competition in the PC Market Dell Technologies suffers from stiff competition in the PC market from the likes of HP HPQ and Apple AAPL. HPQ is benefiting from a sustained focus on launching new and innovative products. The growing interest in generative artificial intelligence-enabled PCs, along with Windows 11 upgrades and a probable PC refreshment cycle, is likely to drive fresh demand for PCs in 2025. The growing interest in generative AI-enabled PCs might give a fresh boost to HP's PC demand in the years ahead. The company forecasted that 40-60% of all PCs will be AI PCs in the next three years. To make the most of the growing opportunities in this category, HP has launched several AI PCs this year and plans to continue to expand its AI PC portfolio. Apple's Mac business is benefiting from strong demand for M4, M4 Pro, and M4 Max chips. In March 2025, Apple expanded its Mac portfolio with the new MacBook Air powered by the M4 chip with up to 18 hours of battery life and a new 12MP Center Stage camera. DELL's Share Price Performance, Valuation and Estimates DELL's shares have risen 1.1% year to date, underperforming the broader Zacks Computer & Technology sector's return of 1.6%. DELL Stock Performance Image Source: Zacks Investment Research DELL stock is trading at a premium, with a forward 12-month Price/Sales of 0.77X compared with the Computer & Technology sector's 6.36X. DELL has a Value Score of A. DELL Valuation The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at $2.26 per share, which has increased 11.5% in the past 30 days. This indicates a year-over-year increase of 19.58%. The consensus mark for fiscal 2026 earnings is pegged at $9.43 per share, which increased 6.91% in the past 30 days. This suggests 15.85% year-over-year growth. DELL currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report HP Inc. (HPQ): Free Stock Analysis Report Dell Technologies Inc. (DELL): Free Stock Analysis Report
Globe and Mail
7 hours ago
- Globe and Mail
Could AMD Finally Challenge Nvidia With Its MI400 AI Chips?
Advanced Micro Devices (NASDAQ: AMD) has built a sizable AI accelerator business over the past few years, but it's a drop in the bucket compared with market leader Nvidia (NASDAQ: NVDA). While Nvidia's data center segment generated more than $39 billion in revenue during the most recent quarter alone, AMD managed just $5 billion in AI accelerator revenue in all of 2024. AMD's latest Instinct MI350X and MI355X graphics processing units (GPUs) are powerful, delivering four times the AI compute performance and 35 times the AI inferencing performance compared to the company's last-generation products. However, specifications and performance are in line with Nvidia's latest Blackwell-based GPUs. AMD's chips feature 288 GB of HBM3E memory and 8 terabytes per second (TB/s) of memory bandwidth, the same as Nvidia's GB300 Superchip. Raw compute performance across different types of operations is also similar to Nvidia's latest. While AMD's MI350X and MI355X are capable AI accelerators, they fail to leapfrog Nvidia. Upping the ante In 2026, AMD will release its next-generation MI400 series AI accelerators. The company claims that the flagship MI400X will be 10 times more powerful than the MI300X, an enormous leap in just a few years. The chips will feature up to 432 GB of HBM4 memory, 19.6 TB/s memory bandwidth, and significant increases in raw computing performance. Of course, Nvidia won't be sitting still. Nvidia's Vera Rubin chips are expected to ship in the second half of 2026, bringing significant performance gains over Blackwell. The initial Rubin AI accelerator will keep memory per GPU at 288 GB but up the bandwidth to 13 TB/s, while Rubin Ultra in the second half of 2027 pile on additional memory and bandwidth. Rubin is expected to more than triple compute performance over its predecessor. While companies' claims about the performance of future products should be taken with a grain of salt, AMD's MI400X looks like it will be a solid contender when it launches in 2026. It should beat Nvidia's current generation of products handily in terms of performance, although Nvidia's next-gen Rubin chips may ultimately win out. One advantage AMD will have is memory, with the MI400X set to offer more capacity and bandwidth than Rubin. For certain types of workloads, that will be appealing. In addition to MI400 family, AMD is planning to launch a new rack-scale AI solution called Helios in 2026. Helios will feature up to 72 MI400 GPUs, Venice EPYC server CPUs with up to 256 cores, and AMD's next-generation Vulcano AI network interface card to enable fast data transfer in high-density clusters. Rack-scale solutions are becoming more popular among AI infrastructure companies as they face challenges building out large enough clusters to handle the latest AI models, and Helios should be a compelling option when it launches. Nvidia will still be tough to beat While AMD will have far more powerful AI accelerators and a new rack-scale AI solution in 2026, Nvidia will probably remain the overwhelming market leader. Not only is Nvidia's hardware powerful, but the company's CUDA software ecosystem provides a critical competitive advantage. AMD is attempting to build out its own ecosystem with ROCm, and the latest version brings increased performance and new features to the platform. However, AMD continues to fight an uphill battle. AMD sees the market for AI chips reaching $500 billion by 2028. With annual AI accelerator revenue at just $5 billion for 2024, the company doesn't need to beat Nvidia to vastly grow its AI chip business over the next few years. More powerful AI chips will help, as will a more fleshed-out rack-scale solution that should appeal to the largest customers of AI accelerators. With the MI400 series and Helios slated for 2026, AMD is positioned to grow its AI-related revenue substantially over the next few years. But just like in the gaming GPU business, the company is almost certain to remain in a distant second place behind Nvidia. Should you invest $1,000 in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
8 hours ago
- Globe and Mail
Why Nebius Group Is One of the Top AI Stocks to Watch
Nebius Group (NASDAQ: NBIS) has had its share of hurdles and headwinds, but is now well-positioned to advance its stock price. The primary hurdle was the divestiture of its Russian operations, which closed last year. Now, the company is a leaner, nimbler, and more focused entity that is able to pursue its AI agenda. That is, building and operating an advanced network of HPC data centers for the AI industry. It is among the earliest adopters of NVIDIA's (NASDAQ: NVDA) full-stack approach to AI infrastructure and is a Reference Platform NVIDIA Cloud Partner. Reference Platform NCPs are a critical block in AI infrastructure. NVIDIA recognizes them as adhering to the highest standards for performance, security, and support. The designation alerts third-party AI operators to the fact that Nebius Group's AI-focused data centers are built on NVIDIA's architecture and optimized for AI workloads, LLMs, and generative AI. That's a competitive edge in a world where AI compute demand is expected to grow exponentially for years. Nebius Group's Solid Q1 and Guidance Affirm AI Demand Outlook Nebius had a strong quarter in FQ1 with revenue in its core operations surging by 385% year-over-year (YOY). The surge was driven by high-double to high-triple-digit increases in all segments, led by AI infrastructure. Critical details include improving operational quality despite continued losses. Losses are primarily due to R&D, investment, and non-cash share-based compensation and are expected to dwindle as the year progresses. The guidance is the driving force for this market, reaffirmed with full-year revenue in the range of $500 to $700 million. That is a forecast for significant sequential acceleration, which may be cautious due to the increasing demand for AI capacity. The balance sheet is in good condition, but there is some risk of dilution. The company's share count increased sequentially in Q1 and may continue to rise as the year progresses. Even so, the balance sheet highlights include ample cash, increasing equity, and ultra-low leverage, with total liabilities of less than 0.1x the equity. The analysts' response to the news was bullish, extending a trend that began the month prior. It includes increasing coverage, upgrades to Buy, and a rising price target that forecasts a 35% upside at the consensus. The revision trend is leading to the high range, which adds 30% to it, and institutional activity aligns with the bullishness. They own only 22% of the market in mid-June, but are buying on balance in 2025, and their activity spiked in Q2. The largest shareholders include Orbis Allan Gray, Slate Path Capital, and Citadel Advisors, which collectively own approximately 10%. Orbis Allan Gray is a South African-based firm utilizing a contrarian approach to long-term investing. Catalysts Ahead for Nebius Group Not only is Nebius Group on track to accelerate its hypergrowth in FQ1 2025, but it is also tracking toward profitability. The full-year guidance includes losses, but the shift to positive EBITDA is expected in the second half. The takeaway for investors is that profitability is at hand and is likely to improve in 2026, resulting in adjusted full-year profits. Consequently, both the 2025 and 2026 forecasts are likely to be conservative. As it is, MarketBeat's reported consensus for F2025 is about 15% below the mid-point of the guidance range, setting the company up to significantly outperform. The chart action since the report is also bullish. The charts indicate a market that has bottomed and is poised for a complete reversal. The critical resistance point is near $51 and marks the baseline of a double-bottom pattern. If the market moves above this level and holds it, it will likely advance from the baseline by the magnitude of the pattern, which is more than $30. A $30+ advance from $51 aligns this market with its all-time highs and puts it on track for a new high that could be set in 2026. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
