AMD is expected to grow slower than Nvidia, whose processing chips continue to be viewed as the gold standard. Additionally, AMD's stock is significantly more expensive. This has led to comparisons of the AI chip rallies to the dot-com era, indicating potential overvaluation and risk.
Key takeaways:
- Advanced Micro Devices Inc. has kept pace with Nvidia Corp.'s rapid growth, but the factors supporting its rally are uncertain.
- Optimism about how the chipmaker will benefit from artificial intelligence is seen as overblown, suggesting recent gains could be at risk.
- AMD is expected to grow slower than Nvidia, whose processing chips continue to be viewed as the gold standard.
- AMD's stock is much more expensive compared to Nvidia.