Amd Is The Next Bullish Chip Stock

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Amd Is The Next Bullish Chip Stock

Amd Is The Next Bullish Chip Stock To Buy In 2025

Nvidia gained an impressive 187% in the year 2024 and broke all records. However, experts believe that another stock that can deliver similar or even better performance in 2025 is AMD.

Advanced Micro Devices has everything it needs to dethrone Nvidia when it comes to the data center chips. One of the key markets for Nvidia has been the data center GPUs, used in the AI models.

Enough Room For Other Gpu Firms

The revenue of Nvidia has also gone through the roof as the demand for AI chips remains solid. However, Nvidia's CEO added that $1 trillion worth of investment will be made in the next 4 years to upgrade the infrastructure.

This shows there is ample room for many other GPU suppliers to join the AI boom. Recently, AMD has also launched its own AI GPUs and the company has already secured some big clients.

Given all of this, Wall Street experts believe that AMD could be the next Nvidia. So, if you missed the staggering rise of Nvidia, you still have the chance in the form of AMD stock.

In fact, many of the Nvidia customers like Oracle, Meta, and Microsoft have already shifted to the AMD chip called MI300X GPU.

Data shows that the companies that switched to AMD chips are now enjoying higher performance. Also, the ownership cost of the AMD chip is low when compared with the Nvidia counterpart.

All of this means the AMD is in the prime position to eat some of the Nvidia share in the market. However, Nvidia has also lunched the new H200, which delivers 2x the performance of H100.

According to senior analysts from Wall Street, the AMD stock remains a buy. Some believe it is overweight, while others recommend the holding of AMD.

During the next 12-18 months, the average target price for AMD stock is $185.77. This means the AMD can deliver a 31% upside.

However, some are also citing a higher target price of $250 for the AMD stock. If that happens, it would be an upside of almost 76%.

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