StocksRunner logo

Forget Nvidia: AMD Secret Weapon to Crush the AI Market

  • user  TechStockTracker
    TechStockTracker  TechStockTracker

    TechStockTracker decode the complex world of finance and investments, with a special emphasis on the dynamic intersection of technology and dividend growth stocks.


stocks on the run



AMD stock has surged over 500% in the past five years but still trails Nvidia's meteoric rise.
AMD new MI300 AI chip is the secret weapon to crush the AI market and take on Nvidia.
Wall Street analysts predict AMD data center revenue to nearly double in 2024 and reach $30 billion by 2027.

The Gaming and Industrial Segments


Advanced Micro Devices (AMD) has long played second fiddle to the industry behemoth, Nvidia. However, recent developments suggest that AMD fortunes may be taking a turn for the better, as the company diversifies its product portfolio beyond its traditional gaming and industrial segments, with its secret weapon, the MI300 AI chip, poised to crush the AI market.


While gaming and industrial sectors may not garner the same attention as artificial intelligence (AI), they remain crucial components of AMD business, accounting for half of its revenue in 2023. The company's industrial revenues, encompassing sales to car manufacturers and telecommunications companies, are expected to increase, with projections suggesting a rise from $846 million in the first quarter to approximately $1.1 billion in the fourth quarter of 2024.


Similarly, the gaming segment, although facing a temporary decline, is anticipated to rebound, with analysts forecasting revenues to increase by several hundred million dollars next year to $3.37 billion. The release of highly anticipated titles, such as GTA VI, is expected to drive consumer demand for consoles and, consequently, AMD gaming chips.


AMD Secret Weapon to Crush the AI Market


As the world becomes increasingly data-driven and AI-powered, AMD MI300 AI chip is the company's secret weapon to crush the AI market and take on Nvidia's dominance. While sales of the MI300 have been slow to take off initially, they are expected to "get into a rhythm," with AMD management raising their 2024 sales forecast from $3.5 billion to $4 billion in April, citing growing demand.


The demand for AMD MI300 AI chip is being fueled by tech giants like Meta, Microsoft, and Alphabet, who are actively building data centers to support the advancement of AI. These companies seek to diversify their chip suppliers, not only to ensure availability but also to maintain competitive pricing – a scenario that plays into AMD favor.


Wall Street analysts are bullish on AMD data center prospects, with projections indicating that the company's data center revenue could reach $12.2 billion in 2024, nearly doubling from the previous year. More impressively, this figure represents less than 15% of Nvidia's expected $94 billion in data center sales, underscoring the immense growth potential for AMD in this space.


Closing the Gap with Nvidia


As AMD continues to refine the production and efficiency of the MI300, a common process for new chips, analysts expect the company's pricing to narrow the gap with Nvidia's offerings. This narrowing of the price differential, coupled with AMD's focus on improving speed and efficiency, positions the company favorably in the race to capture a larger share of the AI and data center markets.


Analysts forecast AMD data center revenue to grow at an impressive 35% annual rate, reaching over $30 billion by 2027 – a pace faster than the projected 20% annual growth rate for total AI spending during the same period. This rapid growth trajectory underscores AMD determination to reduce the gaps and prioritize speed in its pursuit of market dominance.


Moreover, AMD total revenues are expected to reach $47 billion, with the company's operating profit margin projected to increase by more than 10 percentage points. As data center chips typically command higher profit margins and are growing at a faster rate, the anticipated increase in chip sales volume is expected to outpace cost increases, such as wages and research and development expenditures.


Promising Future


While AMD may have lagged behind Nvidia in the past, the company's diversified product portfolio, encompassing gaming, industrial, and data center segments, positions it for a promising future. As the demand for AI and data-driven solutions continues to soar, AMD's investments in its data center business and the MI300 AI chip could prove to be game-changers, propelling the company into a new era of growth and profitability.


For investors seeking exposure to the rapidly expanding AI and data center markets, AMD resurgence presents an attractive opportunity. With Wall Street analysts forecasting impressive revenue growth and margin expansion, AMD stock could potentially offer substantial upside potential, particularly if the company successfully executes its strategy and narrows the gap with industry leader Nvidia.


However, it is essential for investors to conduct thorough due diligence and carefully evaluate the risks and competitive landscape before making any investment decisions. As with any investment, diversification and a long-term perspective are crucial to navigating the ever-changing technological landscape and capitalizing on emerging opportunities.


AMD Stock Analysis

Last Price


Total Score

StocksRunner Raring Score
Strong Sell
Strong Buy




 Earnings are forecast to grow


 Investors confidence is positive


 Trading below its fair value


 Analysts raised price target


Risk Analysis


Risk Analysis

 Downgraded on weak valued


Technical Indicators


Technical Indicators

 MACD falls below signal line


Risk Level

Risk Level

AMD has Moderate Risk Level. Click here to check what is your level of risk


Unlock insights and stay ahead in the stock market game. Click Here For More AMD in-depth stock analysis.


stocks on the run


Unlock Exclusive Stock Insights!

Join for daily market updates, expert analyses, and actionable insights.

Signup now for FREE and stay ahead of the market curve!

Why Join?

Find out what 10,000+ subscribers already know.

Real-time insights for informed decisions.

Limited slots available, SignUp Now!

Login to Stocksrunner

Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.

StocksRunner logo

Get all the pieces of the puzzle on important data activity before the major news sources break the story and find out what happening right now and what could happen in the future



StocksRunner on Facebook StocksRunner on Twitter StocksRunner on YouTube StocksRunner on stocktwits StocksRunner Rss

Receive our Daily Alerts

Discover the wisdom that over 10,000+ subscribers love! Join us for unique insights and keep ahead in the stock world. Just drop your email to get daily updates!

Our Services

Real-time stock market updates

Expert stock analysis

Investment strategies

Top stock recommendations

Trading signals and opportunities

About StocksRunner

Log In

Sign Up

Contact Us

Terms of use

Privacy Policy


Disclaimer: Past performance, whether explicitly stated or inferred from historical testing of methodologies, does not serve as an assurance of future outcomes or achievements. The displayed outcomes pertain to a strategy not historically accessible to investors and do not epitomize the returns achieved by any specific investor. The Readiness Indicators, Sentiment Indicators, and aggregate score derive from a model retrospectively applied to historical data. This model is founded on assumptions intrinsic to its construct, which may remain unverifiable and expose stakeholders to potential losses. Engaging in active trading may not be advisable for individuals possessing limited financial resources, restricted investment or trading acumen, or a conservative risk profile. Please be advised that your invested capital is subject to inherent risks.

Kindly be informed that StocksRunner and its affiliated entities ("TS") neither extend nor endorse any proposition, invitation, or recommendation concerning the acquisition or divestiture of securities, derivatives, prospective products, or any form of investment guidance or strategy.

The information presented herein serves exclusively for illustrative purposes. It is imperative not to predicate investment decisions solely on the content of this platform. Prior to making any financial commitments, it is prudent to evaluate its relevance to your specific circumstances and consult with professionals specializing in financial, tax, and legal domains.

StocksRunner logo


Get the pulse of the market

StocksRunner logo

Find out what happening right now and get all the pieces of the puzzle on important data activity before the major news sources break the story and see what are the trends


StocksRunner on Facebook StocksRunner on Twitter StocksRunner on YouTube StocksRunner on stocktwits StocksRunner Rss


Receive our Daily Alerts

Unlock the knowledge that 10,000+ subscribers already cherish. Join for exclusive insights and stay ahead in the stock game! Enter your email to receive daily alerts

Market trends

In-depth stock analysis

Informed investment decisions

Stock market insights

Stock trading tips

Stocks analysis

Stocks trends

Stocks performance

Stocks analysis

Investment strategies

Stock strategies

Trading strategies

StocksRunner updates

StocksRunner ideas

Financial Reports


Disclaimer: The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.

Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by StocksRunner including any of their affiliates ("TS").

This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.