Market analysts have observed that major tech firms like Microsoft and Meta Platforms are driving demand for AI processors far beyond the supply capabilities of Nvidia and AMD. This has allowed semiconductor companies to sell as much as they can produce, leading to significant increases in chip stock values over the past two years. Since hitting a recent low in August, AMD's (AMD, Financial) stock has surged by approximately 30%.
Investors are keen to see advancements in these companies' technologies to determine if they can sustain this momentum. Summit Insights research analyst Kinngai Chan noted that while no new clients have been announced yet, the anticipation of new developments has contributed to AMD's stock rise ahead of upcoming announcements.
Currently, AMD's stock is down 3.3%, while competitor Nvidia's stock has risen by 1.7%, and Intel's stock has decreased by 0.5%.
