Advanced Micro Devices (AMD) stock climbed 4% after the company’s latest Radeon series offerings grabbed 45% of Japan’s gaming GPU market, according to a report from Tom’s Hardware. This gives AMD a strong foothold in Japan’s GPU market, making it a tough rival for Nvidia (NVDA), which has held a leading position for years.
Why Radeon RX 9070 Is Flying Off Shelves
AMD claims that the latest offerings in their Radeon lineup, the Radeon RX 9070 series, offer strong performance at a competitive price. According to the company, the GPU provides about 23% more performance per dollar compared to Nvidia’s RTX 50 series.
This price-to-performance advantage has caught the attention of gamers, driving strong demand for the RX 9070 XT.
AMD Eyes Bigger Share in Japan’s GPU Market
AMD aims to grab 70% of Japan’s GPU market after its recent gains. To reach this goal, it must tackle supply issues and keep up with demand. The company will also need to keep making fast GPUs at fair prices.
If it pulls this off, AMD could put more pressure on Nvidia and shake up a market Nvidia has ruled for years.
AMD Faces AI Market Hurdles as Nvidia Maintains Lead
Though AMD stock climbed nearly 4% on Monday, it has lost close to half its value over the past year due to worries about its AI revenue. In October 2024, AMD forecasted $5 billion in AI chip sales for 2025, but this fell short of what investors had hoped for. Supply issues and tough competition from rivals like NVDA added to the pressure, pushing AMD’s stock lower.
Recently, Mizuho Securities analyst Vijay Rakesh, a four-star-rated expert, highlighted the challenges AMD faces in the AI market as Nvidia continues to hold a strong lead. He pointed out that AMD has struggled to gain a solid foothold in the chip-on-a-wafer-substrate market, a key tech used by Taiwan Semiconductor (TSM) to build processors.
Is AMD a Buy, Sell, or Hold?
Overall, Wall Street has a Moderate Buy consensus rating on AMD stock, based on 25 Buys, 11 Holds, and 1 Sell assigned in the last three months. The average stock price target for AMD is $147.81, which implies an upside potential of 41.32% from current levels.
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