"Shares of Advanced Micro Devices ( NASDAQ: AMD) rose 2.1% on December 2nd, coinciding with a notable surge in retail investor sentiment on Reddit and X. AMD's sentiment score hit 64 (bullish) at 3am ET on December 3rd, virtually matching NVIDIA ( NASDAQ: NVDA) at 67 during the same period. This convergence marks a dramatic shift in perception."
"The catalyst is AMD-backed Vultr's announcement of a $1 billion AI cluster in Ohio, priced at roughly half the cost of major cloud providers. As one Reddit user stated in r/stocks: "This could be a real alternative for startups and small AI teams that can't afford NVIDIA's cloud platform." The facility launches Q1 2026, offering 50MW of AMD AI processors at a price point that directly challenges NVDA's dominance."
"NVDA maintains a 53% profit margin versus AMD's 10.3%, a gap that reflects NVDA's $4.43 trillion market cap compared to AMD's $350 billion. Analysts remain overwhelmingly bullish on NVDA with a 93.8% buy rating versus AMD's 78.4%. Yet retail traders are increasingly focused on AMD's growth potential rather than NVDA's established dominance."
AMD shares rose 2.1% amid a surge in retail investor sentiment, with a sentiment score of 64 nearly matching NVIDIA's 67. For years NVIDIA led AI infrastructure with Blackwell architecture and 66% YoY data center growth, while AMD reported 22% data center growth and aggressive pricing. Vultr announced a $1 billion Ohio AI cluster offering 50MW of AMD AI processors at roughly half major cloud costs, launching Q1 2026. NVIDIA retains a 53% profit margin versus AMD's 10.3% and a much larger market cap, but AMD benefits from OpenAI partnership, strong client/gaming growth, and a higher forward P/E.
Read at 24/7 Wall St.
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