AMD Rides AI Tailwinds: Can It Take A Bigger Bite Out Of Nvidia?

Advanced Micro Devices Inc. AMD has been heating up, and the charts confirm it – the stock is riding a strong bullish trend. Trading above its five-day, 20-day and 50-day exponential moving averages, AMD stock is flashing bullish signals left and right.

But is there more firepower behind the rally?

Ant Group's GPU Play: A Game Changer?

The big news for AMD isn't just technical—it's fundamental. According to MarketBeat, Ant Group is doubling down on AMD's AI chips, proving they can deliver results on par with Nvidia Corp NVDA. This is the kind of validation AMD bulls have been waiting for.

With Nvidia's GPU business growing at triple-digit rates and generating four times AMD's total 2024 revenue, even a small shift in market share could be massive.

A 1% bite out of Nvidia's dominance translates to a 5% revenue boost for AMD — a game-changing scenario.

Read Also: AMD CEO Lisa Su Says Silicon Scaling Getting ‘More Difficult’ But Progress Isn’t — Praises China’s DeepSeek For Inspiring ‘Faster Pace Of Innovation That Before’

AMD Stock Chart Is Green, But A Long-Term Hurdle Looms

Consider AMD's bullish streak:

• Trading at $114.81, the stock sits above key short-term moving averages, signaling continued buying pressure.
• The eight-day simple moving average at $108.92, 20-day at $103.19 and 50-day at $110.11 all scream bullish.
• However, the 200-day simple moving average at $138.50 raises a caution flag, as does a recovering-from-negative Moving Average Convergence Divergence (MACD) reading.

Is Wall Street Missing The Bigger Picture?

Analysts expect AMD's growth to stay solid but slow in 2025 and 2026. Yet, they may be underestimating its ability to claw back market share, especially in data centers. The company’s data center segment surged nearly 70% in the fourth quarter, outpacing Intel Corp INTC.

Nvidia still has the software advantage, but AMD is closing the gap. Late 2024 updates doubled the performance of its MI300X chip, and more upgrades are coming.

AMD is in a strong uptrend with fundamental catalysts supporting its momentum. If it keeps chipping away at Nvidia's dominance, Wall Street's growth projections could be in for a major revision.

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