Competition Is Heating Up, But Bank of America Still Thinks AMD Stock Is a Buy Here

Advanced Micro Devices (AMD) has always been one of the world’s top chipmakers, but lately it’s been stepping out of Nvidia’s (NVDA) shadow in a big way. Thanks to accelerating growth and rising demand for its chips, AMD has become a top choice for leading artificial intelligence (AI) companies, including OpenAI, the creator of ChatGPT and a key customer. 

That excitement has sent AMD shares soaring this year, as investors increasingly see the company as a serious contender in the AI hardware race. But the hotter the AI chip market gets, the more crowded the field becomes. And now a new threat is emerging from none other than Google parent Alphabet  (GOOG) (GOOGL). On Nov. 25, AMD stock tanked nearly 4.2% after reports surfaced that Meta (META) is considering a multi-billion-dollar investment in Google’s custom Tensor Processing Units (TPUs).