Advanced Micro Devices (AMD) stock traded lower on Tuesday as rivals Arm Holdings (NASDAQ:ARM), Nvidia (NASDAQ:NVDA), and Intel (NASDAQ:INTC) made strategic moves to fortify their positions in the global semiconductor market.
The competitive landscape is heating up, with each company pursuing distinct strategies to gain an edge. Arm is shifting its focus toward in-house chipmaking, Nvidia is developing new chips to maintain its grip on the crucial Chinese market, and Intel has secured a significant investment, attracting interest from the U.S. government.
In the midst of these high-stakes industry developments, financial analysts offered a mixed but generally constructive outlook on AMD’s performance.
Also Read: AMD Acquires Another Company To Expand AI Arsenal
Goldman Sachs analyst James Schneider acknowledged AMD’s strength in data center GPUs but warned of potential scaling challenges and high investor expectations that could limit its upside. Schneider projected AMD’s data center GPU revenue to reach $10–11 billion by 2026.
Meanwhile, KeyBanc analyst John Vinh highlighted the successful ramp of the MI355 and increasing demand in the premium desktop and commercial sectors.
Wedbush’s Matt Bryson noted that while the China market remains uncertain, AMD’s momentum in the client and server segments could offset weaker GPU results, with a potential for further upside if China sales eventually resume.
Benchmark analyst Cody Acree underscored the company’s market share gains in data center and client markets, the ongoing ramp of new AI GPUs, and an expected double-digit growth in the third quarter.
Overall, analysts believe AMD is entering the second half of the year with strong growth drivers, though they disagree on whether the current market expectations leave room for substantial upside.
AMD’s stock has surged 42% year-to-date, outperforming both Nvidia’s 35% and Intel’s gain of over 30%. Despite this strong performance, analysts maintain mixed but largely constructive views on the company’s recent results, citing robust data center momentum while tempering expectations due to high valuation.
In a bold strategic shift, Arm Holdings has moved beyond its traditional licensing model by hiring Rami Sinno, Amazon’s former AI chip director, to lead its in-house chip development.
The company plans to reinvest profits into building complete chips and chiplets to expand its footprint in the smartphone and data center markets, directly challenging rivals like Nvidia, AMD, and Intel.
