Peter Smith
The semiconductor race is heating up, and the spotlight has shifted toward Advanced Micro Devices. While Nvidia has long dominated the GPU and AI market, AMD's stock has recently skyrocketed, delivering returns that outpace its rival by a wide margin.
AMD vs. Nvidia: The Numbers
Since April, AMD shares have surged by 199%, while Nvidia has climbed a still-impressive 96% in the same period. The chart shows a sharp divergence starting in early autumn. By October, AMD's price action accelerated aggressively, while Nvidia maintained a steadier, more moderate uptrend. Market commentator Jeremy Lefebvre noted that AMD's outperformance over Nvidia may become even more pronounced in the next 12 months.
What's Driving AMD's Rally?
Several factors have fueled AMD's remarkable rise: AI-focused chip launches providing credible competition to Nvidia's dominance, attractive valuation making AMD a popular "second bet" for AI-focused investors, and sector-wide momentum supported by growing demand from data centers and cloud computing. Meanwhile, Nvidia continues to post record-breaking revenues and maintain leadership in GPUs and AI systems. But with AMD stepping up competition, the balance of power in the semiconductor space could begin to shift.
For now, AMD is one of the hottest names in the tech sector, showing one of the strongest rallies of 2025. The key question is whether this momentum marks the beginning of a longer structural shift or just a temporary market rotation.
Peter Smith
