What's Going On With Nvidia Stock Thursday?

Artificial intelligence kingpin Nvidia Corp NVDA stock is trading higher Thursday despite analysts claiming the gradual emergence of Advanced Micro Devices, Inc AMD and Intel Corp INTC as other significant beneficiaries of the AI frenzy.

Analyst Ming-Chi Kuo's latest survey indicates that AMD's AI chip shipments for 2024 (mainly the MI300A) will be about 10% of Nvidia (CoWoS-based).

In 2025, CSPs will likely be the main customers for AMD's AI chips. 

If the cooperation between Microsoft Corp MSFT and AMD holds good, and AMD wins orders from Meta Platforms Inc META and Alphabet Inc GOOG GOOGL Google, AMD's AI chip shipments will significantly reach 30% or more of Nvidia's (CoWoS-based) in 2025.

BofA analyst Alkesh Shah also resonated with similar sentiments, citing the potential for AMD and Intel as Nvidia's significant hyperscalers and cloud-service provider clients like Amazon.com Inc AMZN Microsoft Corp MSFT, Alphabet Inc GOOG GOOGL and need twice the power of traditional CPUs.

Over the last decade, Nvidia's $30 billion investment in AI initiatives helped it control over 75% of the AI GPU market. 

Now, Shah expects Nvidia's AI strategy to drive new revenue streams that may ultimately lead to business transformation. He expects Nvidia to maintain a 65%+ share over the longer term with Intel and AMD chip demand primarily driven by the AI CPU market.

Price Action: NVDA shares traded higher by 0.36% at $469.73 on the last check Thursday.