Advanced Micro Devices (AMD) moved lower in early trading Thursday after the stock had surged about 6% during the previous session. The pullback came as investors reacted to fresh developments in the AI chip market.
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New trading tool for NVDA bearsNvidia Orders May Have Weighed on AMD
One key announcement came from Iris Energy (IREN), which said it has signed purchase agreements for more than 50,000 GPUs from Nvidia (NVDA) to expand its AI cloud infrastructure.
Large orders like this can influence sentiment in the AI chip space because AMD competes directly with Nvidia in data-center accelerators, the chips used to train and run artificial-intelligence models.
Nvidia currently dominates that market, which has made investor reactions to major GPU orders particularly sensitive. For investors, the key question now is whether AMD can continue gaining traction in the fast-growing AI accelerator market, where it is trying to challenge Nvidia’s lead.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 23 Buy and eight Hold ratings over the past three months. With that comes an average AMD stock price target of $286.04, representing a potential 41.55% upside for the shares.
