Analysts suggest that AMD may outperform Nvidia in the AI chip market
- Nvidia stock is gaining as market confidence in interest-rate cuts grows
- Analysts suggest that AMD may be a better investment in AI chips
- AMD could benefit from the shift towards inference in AI systems
- Melius Research analyst has a Buy rating on both Nvidia and AMD stocks
- Target price for Nvidia stock implies a potential rise of 26%
- Target price for AMD stock indicates a possible gain of 37%
- AMD stock has further potential to rise from current levels
Nvidia stock is gaining early on Monday as the market becomes more confident about the prospects of interest-rate cuts from the Federal Reserve. However, analysts at Melius Research believe that Advanced Micro Devices (AMD) could be a more rewarding investment in artificial-intelligence chips. While Nvidia is currently the dominant provider of chips to train AI systems, AMD could benefit from the shift towards inference in AI models. The increased capex at big cloud companies is expected to benefit AMD, along with Microsoft and Meta Platforms, as they place orders for inferencing workloads. Despite a recent decline in AMD shares after its earnings report, analysts believe that any caution is due to capacity constraints, which will be alleviated in the second half of the year. Melius Research analyst, Ben Reitzes, has a Buy rating on both Nvidia and AMD stocks, but his target price for AMD indicates a potential gain of 37%, suggesting that AMD may have further potential to rise from current levels.
Factuality Level: 7
Factuality Justification: The article provides information about the stock performance of Nvidia and AMD, including insights from analysts. The information presented is based on market data and analyst opinions, without significant bias or misleading information. However, the article could benefit from more context on the overall market conditions and potential risks associated with investing in these stocks.
Noise Level: 3
Noise Justification: The article provides a focused analysis on the stock performance of Nvidia and AMD, discussing factors such as interest-rate cuts, AI chips, revenue forecasts, and analyst ratings. It stays on topic and supports its claims with data and quotes from analysts. The article offers insights into the potential growth of both companies and their stock prices, making it relevant and informative for investors.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the stock performance of Nvidia and AMD, two major chip makers in the technology industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article focuses on the financial performance and prospects of Nvidia and AMD, without mentioning any extreme events or significant impacts on financial markets or companies.
Public Companies: Nvidia (NVDA), Advanced Micro Devices (AMD), Intel (INTC), Broadcom (AVGO), Microsoft (MSFT), Meta Platforms (META)
Key People: Ben Reitzes (Analyst at Melius Research)
Reported publicly:
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