AMD Faces Stock Price Challenges Amid Nvidia Dominance and Market Shifts

Advanced Micro Devices (AMD), a key player in the semiconductor industry, ended 2024 with its stock price down 17%, a stark contrast to rival Nvidia’s continued ascent. While Nvidia’s stock surged, AMD struggled with market perception, weak PC sales, and competition from custom chipmakers, raising concerns about its future growth.

AMD’s stock decline comes despite strong fundamentals, including the rapid success of its new AI chip, the MI300, which generated $1.5 billion in sales in Q3 2024. The company projects $5 billion in MI300 sales for 2024, with analysts predicting up to $9.5 billion in 2025. However, AMD’s stock performance has been overshadowed by Nvidia’s dominance in the AI chip market and its perceived technological lead.