AMD and NVIDIA launch new chips, fueling AI rivalry

From Nasdaq: 2024-06-03 10:58:00

The battle for AI dominance heats up as AMD and NVIDIA launch new chips at Computex 2024. Worldwide spending on digital transformation is forecast to hit $4 trillion in 2027, driving growth opportunities for both chipmakers. AMD focuses on faster chip launches to stay competitive, unveiling new Instinct accelerators and EPYC server processors. NVIDIA also expands its portfolio with next-generation AI chip architecture, Rubin, and new tools and software models.

Microsoft, Alphabet, and Meta are stepping up their AI game with new chip designs for improved performance and energy efficiency. Microsoft’s Maia 100 AI accelerator, Alphabet’s Axion CPUs, and Meta’s MTIA chips cater to cloud AI workloads, offering better performance and advanced AI research capabilities. NVIDIA remains dominant in the AI market but faces increasing competition from AMD, Microsoft, Alphabet, and Meta.

NVIDIA’s stock has surged 121.4% YTD, outperforming AMD, Microsoft, and Alphabet. NVIDIA’s next-generation chips and high computing power have made it a top choice for enterprises in the AI space. AMD is poised to challenge NVIDIA with its latest products targeting data centers and AI-enabled consumer PCs. NVIDIA is currently a Zacks Rank #1 (Strong Buy) with a Growth Score of A, while AMD is a Zacks Rank #3 (Hold) with stretched valuation metrics. Investors should watch for a better entry point for AMD given its modest growth prospects in the near term.



Read more at Nasdaq: AMD-NVIDIA AI Rivalry Escalates With New Product Launches