AMD Stock Rises As Chipmaker Gears Up To Challenge Nvidia's AI Dominance

Advanced Micro Devices (AMD) is the IBD Stock of the Day for Wednesday, as AMD stock is attempting a breakout from a small handle. AMD shares have gained more than 90% this year as the chipmaker positions itself in the growing artificial intelligence market.

The Santa Clara, Calif.-based AMD competes with Intel (INTC) in making central processing units, or CPUs, for personal computers and servers. But the firm is also a challenger to Nvidia (NVDA) in the market for graphics processing units, or GPUs, for PCs, gaming consoles and data centers.

AMD is targeting the white-hot market for AI chips sparked by the rapid expansion of generative AI applications, an arena dominated by Nvidia. An upcoming event will officially launch new AI chips that AMD detailed earlier this year. $NVIDIA (NVDA.US)$ $Advanced Micro Devices (AMD.US)$ $Intel (INTC.US)$