AMD Will Be as ‘Aggressive as Possible’ to Challenge Nvidia

Advanced Micro Devices (AMD) wants to challenge Nvidia’s (NVDA) dominance of the PC gaming graphics processing unit (GPU) space. Jack Huynh, Senior Vice President and General Manager of the company’s Computing and Graphics Group, told PC Gamer that AMD will be “as aggressive as possible” to achieve this goal.

To win gamers over to Team Red, AMD has priced cards lower than Nvidia to attract budget-minded gamers. For example, its latest GPU, the RX 9060 XT starts at $299 for the 8 GB model and jumps to $349 for the 16GB version. That’s an incredible value compared to the RTX 5060 Ti, the comparable card from Nvidia, which costs $379.

AMD also wants to beat Nvidia by another metric—availability. Huynh noted that “building scale is the number one priority,” for the company. It has worked with suppliers to ensure it has a healthy stock of RX 9060 XT available to meet demand. This should help prevent scalping and allow gamers to buy the cards at their suggested MSRP, which can be hard to do with Nvidia cards due to their limited supply and high demand.

Can AMD Dethrone Nvidia?

There’s no denying that Nvidia has AMD beat in the GPU space, and its dedication to artificial intelligence (AI) is another key sector where Team Green wins. However, analysts are bullish on AMD’s potential in the AI server space. The company recently sold datacenter business ZT Systems to Sanmina (SANM) for $3 billion and formed a strategic alliance with the buyer.

This sparked a series of analysts updates as they highlighted the nature of the sale and what it means for AMD’s AI server rack business. That includes a reiterated Buy rating and price target increase from $117 to $135 from five-star Mizuho Securities analyst Vijay Rakesh.

Is AMD Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 22 Buy and nine Hold ratings over the last three months. With that comes an average AMD stock price target of $126.55, representing a potential 11.49% upside for the shares.

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