Advanced Micro Devices (AMD) stock suffered a blow on Thursday as the competition heats up for the semiconductor company. The big challenge that AMD faces is a new collaboration between its biggest rivals, Nvidia (NVDA) and Intel (INTC).
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Nvidia has announced a $5 billion investment in Intel, which comes to a 4% stake in the chipmaker. This also makes it one of Intel’s largest investors, cementing a relationship between the two. It’s clear that this spells trouble for AMD, as Intel is its largest rival in the CPU space. Adding to that, Nvidia dominates the graphics processing unit (GPU) market, another sector that AMD competes in. With these two companies working together, it could make it difficult for AMD to continue its ongoing push to attract customers.
This isn’t the first time that AMD stock has slipped recently on news of an investment in Intel. The Trump administration also made a large $8.9 billion investment in the company last month, granting it a 10% stake with its 433.3 million shares. With Intel attracting investments from Nvidia and the U.S. government, it looks like AMD has an uphill battle on its hands. That’s despite the company making all the right moves, such as promising to invest more in U.S. manufacturing.
AMD Stock Movement Today
AMD stock was down 3.49% on Thursday but remained up 27.65% year-to-date. The stock was also still up 1.54% over the past 12 months. The AI boom has been a huge benefit to AMD, though it hasn’t attracted as much attention as Nvidia in the space.
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 12 Hold ratings over the past three months. With that comes an average AMD stock price target of $188, representing a potential 22.64% upside for the shares.
