2 Reasons Why AMD Stock Is Guaranteed to Beat Nvidia

I recently covered how the market was waking up to Advanced Micro Devices’ (AMD) Agentic AI potential and how the company’s CEO was proactive in developing the underlying supply chain to fulfill the rising demand. It is worth looking deeper into how AMD got into a position to benefit from the agentic AI boom and started directly threatening Nvidia (NVDA). There are two main reasons why Nvidia should feel threatened by Lisa Su’s company as artificial intelligence buildout progresses.

Reason #1: Taking CUDA Out of the Equation

Nvidia’s moat isn’t the GPUs or the networking equipment it sells. Its moat is the CUDA software, which locks customers in and forces them to use Nvidia’s hardware. The company has been at it for nearly two decades now, so it’s hard for enterprises to trust another hardware vendor when the accompanying software was nonexistent. AMD is changing that, and it is changing it fast. The company’s Radeon Open-Compute (ROCm) open-source software is directly comparable to Nvidia’s CUDA and has been in development for 10 years now. It was always a distant second to CUDA, which is why Nvidia’s moat has remained so strong over the years. However, that gap is narrowing, and Nvidia bulls know it.

Things have changed in the last year or so. First, companies are looking at ways to diversify away from their reliance on Nvidia. ROCm offers a way out. It is portable…