From Nasdaq:

After significant growth last year, chip stocks Nvidia and AMD are experiencing a new phase due to the AI hype cycle tumbling into the “trough of disillusionment.” As tech giants are taking a dive to start the year, investors are looking at which semiconductor stock has more upside potential.

Nvidia is expected to benefit greatly from the adoption of generative AI over the next decade. It reported sales of $18.1 billion for fiscal Q3 of 2024 and a predicted annual EPS growth of 102.5% over the next five years. Gartner projects AI chip sales to surge globally, which would dramatically increase Nvidia’s revenue.

On the other hand, AMD is poised to benefit from a booming AI chip market, although its sales are forecast to decline by 4% year over year in 2023. However, the revenue is expected to rise by 16.6% in 2024. Compared to Nvidia, AMD is growing at a slower pace and is currently viewed less favorably by Wall Street analysts.



Read more: AMD vs. Nvidia: Which AI Chip Stock Has More Upside Potential?