Nvidia's Rise
Nvidia's stock price soared above $800 on Friday, with shares up 1.7% at $804.45 shortly after the opening bell. The company closed at $791.12 on Thursday, boasting a valuation of approximately $1.98 trillion.
AMD's Dominance
In contrast, Advanced Micro Devices (AMD) saw a significant increase of 4.6% to $201.44, breaking through a $300 billion market valuation for the first time. The company's momentum has surpassed that of Nvidia's, particularly evident in AI chip stock performance.
AMD's Bright Future
The highlight on AMD over Nvidia is attributed to the surge in AI server demand noted by Dell Technologies. Dell reported robust orders for hardware featuring chips from both AMD and Nvidia, pointing to a positive outlook for both companies.
Market Response
Investors have shown more confidence in AMD's push into the AI market, with Dell's comments serving as a reassurance. Melius Research analyst Ben Reitzes noted in a research note that traditional server CPUs picking up provide a boost to AMD's margins. Additionally, meaningful orders for AMD's MI300X are expected to drive shipments in the upcoming quarters.
Stock Performance
Nvidia has witnessed a 60% surge in stock value this year, outperforming the S&P 500's 6.8% increase and the Nasdaq Composite's 7.2% rise during the same period. The market response tilts favorably towards both Nvidia and AMD, driven by the promising AI server demand outlook.
Utilize the distinctive strengths of each company to navigate the evolving landscape of artificial intelligence and server technology for sustainable growth.
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