AMD (NASDAQ:AMD) CEO delivered a compelling keynote address at Computex, potentially shifting investor focus from the MI300X's revenue outlook to the broader horizon of product launches and market share gains over the next one to two years, according to Lynx Equity Strategies.
The firm said this presentation may offer "upside alpha in the stock," marking a significant turn in investor sentiment.
The keynote provided an extensive overview of AMD's diverse product portfolio, from AI PCs and servers to data center connectivity and edge silicon.
Lynx noted AMD's open silicon architecture allows independent software vendors (ISVs) to develop advanced AI applications, a key differentiator from NVDA, which has broader software capabilities but also competes with hyperscale data center partners.
They also highlight that while the potential of AI is evident, many enterprises are cautious, waiting for the rapid innovation in AI processors to stabilize before making significant investments. With inferencing efficiency improving dramatically at both NVDA and AMD, enterprises anticipate further cost reductions.
It is said that investors often view AMD as trailing NVDA. However, the firm said the Computex keynote lets them "believe that AMD is keeping the pressure on NVDA in a race to cost leadership."
"If AMD can maintain the pressure, we think over time, it has the potential to expand the ecosystem of software and app development partners, thereby offsetting somewhat NVDA's software moat," said Lynx.
Historically, market share often shifts towards the low-cost leader in silicon technology. While AMD surpassing NVDA remains unlikely, Lynx Equity Strategies believes that within the next 12 to 24 months, AMD could narrow the market share gap, bolstering its position in the competitive landscape.