![\"Zacks](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/144474.jpg\"\/)
\u00a0<\/p>\n
Image Source: Zacks Investment Research<\/p>\n
Let\u2019s find out \u2013\u00a0<\/p>\n
AMD: The AI Challenger Ready to Outgrow NVIDIA\u00a0<\/p>\n
AMD may not match NVIDIA in market capitalization anytime soon, but its strong growth prospects give it plenty of room to catch up and possibly outpace NVIDIA in growth.\u00a0<\/p>\n
Although AMD entered the artificial intelligence (AI) market later than its larger peers, it has rapidly closed the gap by offering advanced, competitively priced products relative to NVIDIA\u2019s offerings. When soaring demand made NVIDIA\u2019s Blackwell chips pricey, several customers, including OpenAI, began adopting AMD\u2019s Instinct AI accelerators as an alternative to fulfill their needs.\u00a0<\/p>\n
AMD\u2019s chips are increasingly seen as a viable alternative to NVIDIA\u2019s, with major industry players like International Business Machines Corporation (IBM Quick QuoteIBM<\/a> – Free Report<\/a>) using them to advance their quantum computing initiatives. Several other companies are also increasing their faith in AMD\u2019s products, with Oracle Corporation (ORCL Quick QuoteORCL<\/a> – Free Report<\/a>) and AMD launching the first AI supercluster with 50,000 AMD graphics on Oracle Cloud Infrastructure. Similarly, Cisco Systems, Inc. (CSCO Quick QuoteCSCO<\/a> – Free Report<\/a>) and AMD are expanding AI cluster deployments with G42 in the UAE.\u00a0<\/p>\n Although AMD\u2019s ROCm software hasn\u2019t reached the popularity of NVIDIA\u2019s CUDA, a recent spike in downloads reaffirms that AMD\u2019s chips are emerging as viable alternatives, poised for growth. Additionally, AMD\u2019s smaller market size compared to NVIDIA gives it ample room to capture growth in the rapidly expanding AI market. So, by securing a few new customers, as it has been doing, AMD\u2019s growth rate can outpace NVIDIA\u2019s by a wide margin.\u00a0<\/p>\n Unlike NVIDIA, AMD\u2019s business is better insulated from a possible AI bubble, as a large chunk of its revenues comes from gaming rather than solely from data centers, lowering its downside risk.\u00a0\u00a0<\/p>\n Why AMD Is a Compelling AI Buy Right Now\u00a0<\/p>\n AMD\u2019s late but rapid AI push, competitive pricing and a diversified business position it to outpace NVIDIA and make it an attractive investment. Management is also optimistic about AMD\u2019s financial outlook, with fourth-quarter 2025 revenues expected to be around $9.6 billion, plus or minus $300 million, according to ir.amd.com<\/a>. At the mid-point, this forecast implies 25% year-over-year growth and a 4% sequential gain.\u00a0<\/p>\n Brokers too remain bullish on AMD\u2019s growth, estimating an average short-term price target for AMD stock at $286.49, a 13.6% increase from the last closing price of $252.18. The highest target is $380, suggesting a potential upside of 50.7%.<\/p>\n Image Source: Zacks Investment Research<\/p>\n![\"Zacks](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/144475.jpg\"\/)
\u00a0<\/p>\n