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
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