AMD and Nvidia Battle for AI Dominance at CES 2025: Stock Performance and Market Outlook

Is AMD stock undervalued: Why now could be the perfect time to buy

Advanced Micro Devices, Inc. (NASDAQ: AMD) has faced analyst downgrades, resulting in its stock trading at recent lows, which some consider a buying opportunity. The company is slated to report Q4 2024 results soon, with focus on its 2025 AI GPU guidance likely to be pivotal. AMD ended 2024 on a lower note, with several analysts downgrading the stock recently following a disappointing CES lineup. Goldman Sachs lowered AMD to a Neutral rating and adjusted the price target from $175 to $129, while HSBC cut its price target from $200 to $110, citing challenges in penetrating the AI GPU market and concerns over memory supply from Samsung affecting the MI325 GPU. Rosenblatt has been notably bullish on AMD, forecasting substantial growth in 2026 driven by the MI350, with a price target of $250, contrasting the negative sentiment that currently surrounds the stock. At the UBS Global Technology conference, Data Center EVP Forrest Norrod articulated AMD's goal to secure a 20% market share in the AI GPU space, emphasizing the need to be significant in the ecosystem. AMD pauses RDNA 4 launch to outsmart Nvidia AMD is expected to return to over 20% growth in 2025, with forecasts of $7.5 billion in revenues for Q4 2024, representing year-over-year growth of 22%. The critical focus will be on CEO Lisa Su's guidance for AI GPU sales in 2025, which the market anticipates could reach between $8 to $10 billion, facilitating potential stock recovery. In 2024, AMD shipped 327,000 MI300X GPUs, with major customers including Meta (173,000), Microsoft (96,000), and Oracle (38,000). As the AI GPU sales target for 2024 is only $5 billion, the company aims to leverage its existing relationships with significant server spenders like Meta and Microsoft. AMD's stock trades at 23 times earnings per share (EPS) targets for 2025, which are estimated to exceed $5. The broader revenue forecast is approximately $32 billion with projected growth of 26%. AMD continues to work with multiple memory vendors to alleviate any supply challenges for the MI325. Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

AMD stock rises 3.9% during CES 2025: Is $250 within reach?

Advanced Micro Devices (AMD) announced an expanded lineup of processors designed for AI-enabled personal computers aimed at both consumers and commercial users during a preview event at CES 2025, held on Monday. Following a challenging year, AMD's stock fell 18% in 2024, ending the year at $120.79. However, on Friday, AMD stock rose by 3.9%, closing at $125.37. Rosenblatt Securities named AMD stock one of its eight "best ideas" for the first half of 2025, with analyst Hans Mosesmann rating it as a buy and setting a price target of $250, predicting that AMD will gain market share in CPUs from Intel (INTC) and GPUs from Nvidia (NVDA), according to Investors.com. The company is also expected to benefit from a semiconductor recovery in non-AI chips later in 2025, according to Mosesmann's December 23 client note. Conversely, Bernstein analyst Stacy Rasgon reaffirmed a market perform rating on AMD stock, projecting a price target of $150 and expressing a preference for remaining on the sidelines with AMD. AMD has made significant progress in the semiconductor industry, competing vigorously against Intel and NVIDIA. Its product portfolio encompasses four key segments: Data Center, Client (PCs), Embedded, and Gaming, with a current market capitalization of $210.58 billion and annual revenue of $24.3 billion. The company's strategic acquisitions, including the $4.9 billion purchase of ZT Systems in August 2024, are aimed at enhancing its AI infrastructure capabilities for hyperscale customers. Diving into financial health, AMD reported robust demand across both its data center and PC markets, maintaining a current ratio of 2.5, indicating sound liquidity. Analysts predict earnings per share (EPS) of $3.46 for the current fiscal year and $5.34 for the next, reflecting anticipated profitability growth driven by strong performance in key segments and ongoing strategic initiatives in AI. In the AI and data center markets, AMD's aMI300 product line, featuring high-performance GPU accelerators, is projected to generate over $5 billion in revenue for 2024, revised upward from earlier estimates of $4.5 billion. The AI accelerator market is expected to reach $500 billion by 2028, with analysts suggesting that AMD could capture a mid-single digit share. Intel stock slips another 2.9%: Can it bounce back from a 57% slide? While AMD's focus on AI is paving the way for growth, the company continues to perform well in traditional client and gaming markets. There are signs of resilience in the PC market, where AI-enabled devices could lead to longer upgrade cycles and increased growth prospects. AMD's technology roadmap is enhancing its competitive stance across multiple segments. However, AMD faces challenges, particularly in the competitive AI GPU market, where it is up against established players like NVIDIA. Integration risks from the ZT Systems acquisition include potential cultural clashes, technology merging hurdles, and regulatory scrutiny. Despite previous struggles, some analysts express optimism regarding AMD's prospects. With a consensus Strong Buy rating supported by 24 Buy and 8 Hold recommendations, the average 12-month price target from analysts stands at $184.37, implying potential gains of nearly 42% for the year ahead. The MI300 accelerators look promising, and AI-driven growth could be a game-changer if AMD grabs a slice of the $500B AI accelerator market. Rosenblatt's $250 target is bold, but it's riding on AMD stealing share from Intel and Nvidia -- easier said than done. On the flip side, Bernstein's cautious $150 target reflects AMD's uphill battle in GPUs and potential risks from the ZT Systems buyout. With the stock up 3.9% but down 18% in 2024, this year is do-or-die for AMD. Watch AI execution closely. Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

Nvidia Soars, AMD Stalls: AI Race Heats Up At CES 2025 - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)

AMD struggles with technical weakness but eyes CES 2024 to spark interest with RDNA 4 graphics cards. The stage is set for a semiconductor showdown as Nvidia Corp NVDA and Advanced Micro Devices, Inc. AMD square off at the CES 2025. With Nvidia riding a wave of AI-driven growth and AMD looking to regain its footing, the contrasting fortunes of these chip giants highlight the evolving dynamics in the semiconductor sector. But will CES spark a turnaround for AMD, or will Nvidia continue its dominance? Nvidia: Still The AI Darling Nvidia has been on fire, boasting a jaw-dropping 189.61% gain over the past year. Chart created using Benzinga Pro The stock is in turbo mode, with all signals pointing to strong bullish momentum: NVDA Price Action: At $151.21, NVDA stock sits comfortably above key SMAs (Eight-, 20-, 50- and 200-day). MACD (moving average convergence/divergence): Positive at 1.14, reinforcing bullish vibes. RSI (relative strength index): 65.52, indicating there's room to climb further. As the world's AI obsession fuels demand, Nvidia's server partner Foxconn has clocked a 15% revenue jump, thanks to soaring AI infrastructure sales. All eyes are now on CES 2024, where CEO Jensen Huang is set to tease the much-hyped Blackwell chip. With supply chain hiccups in the rearview mirror, this could be the nitro boost Nvidia needs to leave its November slump in the dust. Read Also: AMD, StradVision Team Up To Boost Driver Assistance Systems For Autonomous Cars AMD: Trying To Catch Up AMD, meanwhile, is stuck in neutral. The stock is down 11.25% over the past year and has shed 27.40% in six months, a stark contrast to Nvidia's ascent. Chart created using Benzinga Pro The technical indicators aren't offering much relief: AMD Price Action: At $130.13, AMD stock remains below critical SMAs (both 50- and 200-day). MACD: At a negative 3.61, signaling ongoing weakness. RSI: 51.50, stuck in neutral territory. AMD is hoping CES 2024 will be its comeback stage, with plans to unveil RDNA 4 graphics cards and other innovations. While the company's $203.4 billion market cap is nothing to scoff at, it's clear AMD is playing catch-up as Nvidia sprints ahead in the AI race. Chip Showdown: Nvidia Stays Ahead Nvidia's dominance in AI and its solid technical setup make it the undeniable leader, while AMD is left fine-tuning its strategy. For now, Nvidia's stock looks like a well-oiled machine, while AMD's engine is still warming up. Watch Huang's CES keynote Monday evening here: Read Next: CES 2025 Preview: Nvidia And AMD Grab Spotlight, Other Trends And Stocks To Watch Photos: Shutterstock Market News and Data brought to you by Benzinga APIs