By Tirthankar Chakraborty
Publication Date: 2026-02-02 17:00:00
Advanced Micro Devices, Inc. AMD has surged 107.1% over the past year and easily outpaced rival NVIDIA Corporation’s NVDA gains of 63.8%. With both companies competing in the chip market, investors are left asking: can AMD continue its winning streak, and is it a good time to buy the stock?
Image Source: Zacks Investment Research
Let’s find out –
AMD: The AI Challenger Ready to Outgrow NVIDIA
AMD may not match NVIDIA in market capitalization anytime soon, but its strong growth prospects give it plenty of room to catch up and possibly outpace NVIDIA in growth.
Although AMD entered the artificial intelligence (AI) market later than its larger peers, it has rapidly closed the gap by offering advanced, competitively priced products relative to NVIDIA’s offerings. When soaring demand made NVIDIA’s Blackwell chips pricey, several customers, including OpenAI, began adopting AMD’s Instinct AI accelerators as an alternative to fulfill their needs.
AMD’s chips are increasingly seen as a viable alternative to NVIDIA’s, with major industry players like International Business Machines Corporation IBM using them to advance their quantum computing initiatives. Several other companies are also increasing their faith in AMD’s products, with Oracle Corporation ORCL and AMD launching the first AI supercluster with 50,000 AMD graphics on Oracle Cloud Infrastructure. Similarly, Cisco Systems, Inc.
