- As demand for AI solutions grows, hardware makers are enjoying ever growing demand for their technology.
- Both AMD and Nvidia have seen their stock prices climb this week as more companies embrace AI.
- While AMD lags behind Nvidia, the firm is making in-roads into the AI sector at a rapid pace.
The surge in interest in everything related to artificial intelligence grows and so to do the stock prices of Nvidia and AMD.
On the back of the prospect of more demand for AI-powered chips, Reuters reports that Wall Street analysts have hiked the price of the two tech firms’ stock prices. On Tuesday it was reported that the price of Nvidia’s stock rose three percent to $563.65, a new record high for the firm while AMD’s stock price jumped 7.5 percent to $157.57. This is AMD’s highest stock price in two years.
Wall Street wasn’t the only one charging more for Nvidia and AMD stock. Barclays reportedly raised its target price for AMD shares to $200 from $120 while KeyBanc raised the price of stocks to $195 and $740 for AMD and Nvidia respectively.
As many as 53 analysts recommend buying Nvidia stock while 47 recommend buying AMD stock according to London Stock Exchange Data.
As far as the two companies compare, Nvidia is well ahead of AMD in the AI race. The firm saw revenue from its data centre business balloon 843 percent in the second quarter of 2023 when comparing the same period in 2022.
As we’ve mentioned before, the computational power requirements for artificial intelligence at the scale enterprise customers require is immense. As such, cloud platform operators trying to attract that business need to improve their infrastructure and Nvidia was seemingly poised to take advantage of that.
Since seeing Nvidia’s gains, AMD has been working to thrust itself onto the market as well with the announcement that it’s bringing AI data center chips to the market. The firm also acquired Nod.ai late last year in hopes of providing customers with open software “that allows them to easily deploy highly performant AI models tuned for AMD hardware”.
While those selling AI platforms and models may find the marketing getting tighter and more competitive, the infrastructure providers are likely going to enjoy just how easily the money rolls in.
We suspect that given the veracity with which AI is going to be pursued this year, AMD and Nvidia are just going to see more and more gains.