- **NVIDIA**’s retail investor sentiment turned negative after **AMD** announced a major GPU partnership with **OpenAI**.
- Message volume about **Nvidia** increased by over 400% within 24 hours, reflecting heightened concern among investors.
- Some market participants predict a significant decline in **Nvidia**’s stock, citing competition from **AMD** and **Intel** as well as restrictions on Chinese sales.
- Analyst Ming-Chi Kuo believes that deploying **AMD**’s AI chips may face challenges, reducing the immediate threat to **Nvidia**.
- **OpenAI** clarified that its **AMD** deal is additional to its ongoing relationship with **Nvidia** and plans to increase **Nvidia** purchases in the future.
Retail investors grew more cautious toward Nvidia following AMD‘s announcement of a strategic partnership with OpenAI to provide graphics processing units (GPUs) for Artificial Intelligence deployments. This shift in sentiment became apparent early Tuesday as message volume concerning Nvidia increased sharply and investor mood shifted to negative.
Over the past day, message volume about Nvidia surged over 400%. The stock closed Monday at $185.54, down 1.11%, amid predictions from some individuals that shares could fall to as low as $150 in the near future. Some participants pointed to new competitive pressures from AMD and Intel, and highlighted the impact of export restrictions limiting Nvidia‘s sales of advanced AI chips in China.
Several investors expressed concerns about Nvidia‘s valuation and market positioning. One user stated that the AMD-OpenAI agreement, combined with the adoption of AMD’s ROCm open-source software, marked a turning point. Another noted that Nvidia’s CUDA software still dominates, but competition is intensifying.
TFI Securities analyst Ming-Chi Kuo commented that the process of rolling out one gigawatt (GW) of AMD MI450 AI chips may encounter significant challenges, referencing Nvidia‘s experience building cabinet-level (large-scale) servers. “Nvidia’s strategy would be to elevate the competitive landscape to another level before AMD’s cabinet-level servers are successfully delivered, securing its future advantage,” said Kuo, adding that overall AI market growth should limit the immediate impact on Nvidia.
OpenAI CEO Sam Altman addressed concerns about shifting business from Nvidia, stating in a social media post that purchases from Nvidia will continue to increase and that the AMD deal is incremental.
So far this year, Nvidia shares are up 38.2%. AMD stock has risen 69%, including a 23.7% rally on Monday.
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