Nvidia (NVDA) is the clear market leader in the ongoing AI boom. The company has seen massive gains over the last few years as demand for AI chips surge and data centers become the modern day real estate winner. While Nvidia (NVDA) has been the top choice, Advanced Micro Devices, Inc (AMD) is quickly gaining momentum. Let’s discuss why AMD could potentially beat Nvidia in the stock market in the long run.
Why AMD Stock Can Beat Nvidia In The Long Run
AMD has a rather unique position among other chip manufacturers. AMD is heavily involved in the CPU (Central Processing Unit) and GPU (Graphics Processing Unit) markets. Nvidia also manufacturers some CPUs, but lags behind in this sector.
Currently the world is dominated by generative AI which is more dependent on GPU power. Nvidia’s dominance in the GPU market has propelled the company into being the most valuable in the world. However, we will soon see the coming of agentic AI, which is more dependent on CPU power. AMD could get the edge after agentic AI takes center stage.
AMD also recently revealed a host of chips, particularly the Helios stack, which the company claims can outperform Nvidia’s offerings. The Helios range of chips is highly anticipated and the roll out of these chips could see big returns for AMD’s stock by the fourth quarter of this year. If the chips are as powerful as the company claims, it could bring substantial competition to Nvidia.
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AMD is also a key player in the gaming industry, along with Nvidia. The gaming industry is expected to continue growing over the coming years and AMD could see a big stock price surge by the end of the decade.
AMD’s position in the AI chip, gaming, and data center markets could lead to its stock eventually beating Nvidia in the long run.