AMD Gains Favor Over Nvidia as AI Chip Momentum Shifts
Advanced Micro Devices is emerging as Wall Street's new semiconductor darling, with analysts at Citi and TD Cowen highlighting superior earnings growth potential through 2027. The shift comes as Nvidia's AI dominance shows signs of moderation after a two-year reign.
Christopher Danely of Citi notes AMD's updated revenue targets and margin projections have solidified long-term confidence, particularly after the company's recent analyst event. TD Cowen maintains a $290 price target, citing AMD's $1 trillion addressable market in AI - a figure that now factors in full dilution from the OpenAI partnership.
The market appears to be rewarding forward-looking potential over current dominance. AMD's average price target of $281.78 suggests 22.4% upside potential, with the Moderate Buy consensus reflecting measured Optimism about its ability to capture AI market share.
