#2 - Advanced Micro Devices (NASDAQ:AMD)
If there’s a 1A to NViDIA’s leadership in the chip sector, it’s Advanced Micro Devices Inc. (NASDAQ: AMD). The chipmaker has alternatives to the AI accelerator chips that data centers need. However, with only $4.5 billion in data center revenue in contrast to NVIDIA’s $100 billion, AMD is still a distant second, but could potentially gain market share if NVIDIA’s Blackwell chip delay is longer than expected.
That said, the company’s recent $5 billion acquisition of ZT Systems may help close its gap with NVIDIA in a different way. In this case, ZT Systems can provide crucial networking technology to AMD that currently is the sole domain of NVIDIA. This has the potential to now only raise AMD’s floor but also lower NVIDIA’s ceiling (i.e.profit margins).
And whatever AMD may lack in data centers, it makes up for as the leader in GPUs for gaming systems. Plus, the company will benefit from a refresh cycle in central processing units (CPUs).
About Advanced Micro Devices
Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.
Read More - Current Price
- $167.49
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 29 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $193.45 (15.5% Upside)
