NVIDIA Stock Analysis: Can It Rival AMD?

NVIDIA has been a dominant force in the AI chip market, with its stock rallying nearly 40% in 2025.

Investors and analysts are closely watching whether this momentum can continue, especially as competition intensifies.

While skeptics argue that AI adoption may not deliver the expected returns, NVIDIA still has a strong foothold in both gaming and enterprise markets.

Meanwhile, AMD has recently struck a major deal with OpenAI, gaining strategic GPU deployment for AI applications and a potential 10% stake in the company.

These developments raise an important question for investors: can NVIDIA maintain its lead and rival AMD in the growing AI-driven computing market?

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Key Takeaways

1. NVIDIA stock remains strong but faces increasing competition from AMD’s AI deals.

2. AMD gains a strategic edge with OpenAI, potentially securing 10% equity and large-scale GPU deployment.

3. Both companies are central to AI infrastructure, shaping future technology growth and investor returns.

NVIDIA’s Market Position and Stock Performance

NVIDIA has become synonymous with AI acceleration, powering large-scale generative AI models and maintaining leadership in GPU technology.

The company recently secured a $100 billion equity-and-supply agreement with OpenAI, combining long-term hardware supply with strategic investment. This cements NVIDIA’s position as a foundational supplier for AI infrastructure.

Factors Supporting NVIDIA’s Stock

• Strong market share in data center and gaming GPUs.

• Long-term partnership with OpenAI ensures high-demand infrastructure.

• Proven revenue growth and operational stability, even amid market volatility.

Despite a slight dip following AMD’s new partnership announcement, analysts like Ben Reitzes of Melius Research argue that deceleration fears are overblown, and NVIDIA still has room to run.

Its established customer base, diversified revenue streams, and innovation pipeline make it a compelling option for investors seeking exposure to AI-driven growth.

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AMD’s Strategic Partnership with OpenAI

AMD has recently reached a landmark deal with OpenAI, granting the AI firm access to 6 gigawatts of AMD’s Instinct GPUs over multiple years.

This deal starts with a 1-gigawatt rollout in the second half of 2026 and positions AMD as a core AI partner.

OpenAI can acquire up to 10% ownership in AMD through warrants tied to deployment and performance milestones.

Implications of the AMD Deal

• Strengthens AMD’s presence in the AI infrastructure market.

• Provides a flagship customer validating next-generation GPU technology.

• Reduces reliance on a single supplier, diversifying AI supply chains.

For AMD, the partnership is both a commercial milestone and a validation of its Instinct GPU roadmap, allowing it to compete more directly with NVIDIA.

CEO Lisa Su emphasizes that these strategic alliances are critical for enabling large-scale AI deployments, ensuring AMD stays relevant in an increasingly competitive market.

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Comparing NVIDIA and AMD: The AI Race

Both NVIDIA and AMD are critical players in the rapidly expanding AI ecosystem. NVIDIA’s established partnerships and early infrastructure deployments give it an advantage in market share and investor confidence.

Meanwhile, AMD’s OpenAI agreement introduces a significant new player in the AI accelerator space, potentially closing the gap with NVIDIA in both technology and market influence.

Key Considerations for Investors

• NVIDIA leads in installed AI infrastructure, but AMD’s new deals could challenge this dominance.

• Both companies benefit from exponential AI adoption trends across enterprise and consumer markets.

• Investor decisions may depend on long-term growth, partnerships, and product innovation, rather than short-term stock movements.

The AI chip market is increasingly shaped by partnerships, capital investment, and hardware deployment.

NVIDIA and AMD are intertwined with the same ecosystem, creating both opportunity and competition.

Investors should monitor how these companies balance supply, innovation, and strategic alliances to maintain growth.

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Conclusion

NVIDIA continues to be a dominant force in AI chips, with strong stock performance and a solid foothold in data center and gaming markets. The company’s partnership with OpenAI ensures high demand and long-term growth potential.

Meanwhile, AMD’s recent agreement with OpenAI signals a meaningful challenge, providing GPU deployment and potential equity ownership that could boost its market position.

Both companies are vital to the AI infrastructure ecosystem, making them attractive to investors seeking exposure to AI-driven growth.

NVIDIA benefits from early adoption, established relationships, and a proven track record, while AMD’s new partnership could accelerate its competitiveness in the coming years.

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FAQ

How has NVIDIA’s stock performed in 2025?

NVIDIA’s stock has rallied nearly 40% this year, driven largely by AI demand and strategic partnerships.

What is AMD’s deal with OpenAI?

AMD will supply 6 gigawatts of Instinct GPUs to OpenAI over several years and may grant OpenAI up to 10% ownership through warrants.

Can NVIDIA rival AMD in AI chip deployment?

Yes, NVIDIA remains a leader in AI infrastructure, though AMD’s new partnership narrows the competitive gap.

How do AI partnerships affect stock performance?

Strategic partnerships create long-term demand for chips, impacting revenue growth and investor confidence.

Is investing in NVIDIA or AMD recommended for AI exposure?

Both companies are key players in AI infrastructure, making them potential options for investors seeking exposure to AI-driven growth.

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