"Wells Fargo crowns AMD the new chip king. The bank upgraded semiconductor stocks this morning with AMD as its top pick-a bold call considering Nvidia's dominance. AMD crushed both the market and NVDA in 2025, posting 90% gains versus Nvidia's 37%. The stock jumped 6.5% this week to $223.60, with RSI at 57 showing room to run before overbought territory. Wells Fargo sees AMD's data center momentum and MI300 AI accelerators gaining share against Nvidia's H100/H200 lineup."
"China moves to restrict Nvidia, but the damage may already be done. Beijing is drafting regulations to limit AI chip purchases from Nvidia, adding geopolitical risk to the semiconductor thesis. NVDA dropped 3.2% this week to $183.14 despite eight consecutive earnings beats and 9x EPS growth since 2023. Nvidia derives meaningful revenue from China through export-compliant chips like the H20, but prediction markets never confirmed rumors that DeepSeek used banned Nvidia hardware. That market resolved to "no" in March 2025."
Wells Fargo upgraded AMD to its top semiconductor pick, citing data center momentum and MI300 AI accelerator share gains versus Nvidia. AMD gained 90% in 2025 versus Nvidia's 37%, and the stock rose 6.5% this week to $223.60 with an RSI of 57. Analysts expect $1.33 EPS on $9.7 billion revenue for the upcoming February 3rd earnings report. Intel rallied 14% this week amid turnaround optimism, but reported a 0.37% profit margin and a 71% year‑over‑year earnings decline. Beijing is drafting regulations to restrict Nvidia AI chip purchases, adding geopolitical risk. Nvidia still earns meaningful China revenue via export‑compliant chips and faces market valuation pricing in regulatory headwinds. TSMC reported a strong quarter with high gross margins and growing advanced‑node revenue share.
Read at 24/7 Wall St.
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