Should You Buy Advanced Micro Devices (AMD) Stock Before Aug. 5?

Is it advisable to purchase Advanced Micro Devices (AMD) shares prior to August 5?

In the rapidly evolving world of technology, AMD and Nvidia continue to dominate the AI chip market, each with its unique strengths and growth strategies.

AMD, a top supplier of GPUs and AI chips for personal computers, has seen a significant surge in its revenue. The company reported a staggering $7.4 billion in revenue during the first quarter of 2025, marking a 36% increase from the year-ago period. This growth is particularly impressive in the gaming sector, despite a steady decline in sales for consoles like Sony's PlayStation 5 and Microsoft's Xbox.

CEO Lisa Su is set to give an update on AMD's latest hardware products, including the MI355X and MI400 data center GPUs. The MI355X, launched in December of 2023, is around 35 times more powerful than its previous generation, making it a formidable contender in the market. AMD is also planning to release the MI400 Series GPUs in 2026, which are expected to deliver similar performance to Nvidia's Rubin chips.

However, AMD faces challenges in the AI chip market. The company is expected to pay a 15% revenue share to the US government on AI chip sales into China, following the latest restrictions on chip exports. This regulatory hurdle, along with tariff impacts, may affect AMD's margins and pricing power moving forward.

On the other hand, Nvidia remains the dominant player in the AI chip market. The company's H100 GPU was the dominant data center chip for AI workloads in 2023, with a 98% market share. Nvidia's advanced GPU technologies, like Blackwell, offer a projected 10x leap in AI training efficiency over previous generations. This technological edge has propelled Nvidia's growth, with its AI chip revenue expected to reach approximately $30 billion in China alone in 2026. The company's overall revenue guidance for 2026 suggests continued strong year-over-year growth around 50%, though somewhat decelerating from the explosive growth seen earlier in 2025.

Despite AMD's efforts to grow its AI offerings, Nvidia is expected to maintain its lead in the market. Wall Street's consensus estimate suggests Nvidia's non-GAAP EPS could grow to $5.71 in 2026, placing its stock at a forward P/E ratio of just 27.6.

In summary, both companies are navigating the complexities of the AI chip market, with regulatory and geopolitical factors playing a significant role. AMD is growing its AI chip portfolio, while Nvidia continues to lead with its advanced technology. The future of the AI chip market will be an exciting space to watch as these tech giants compete and innovate.

[1]: Regulatory and geopolitical factors impacting AI chip market growth for AMD and Nvidia. (2025). TechCrunch. Retrieved from https://www.techcrunch.com/2025/04/15/regulatory-and-geopolitical-factors-impacting-ai-chip-market-growth-for-amd-and-nvidia/ [2]: Nvidia's Blackwell GPU offers 10x leap in AI training efficiency. (2025). VentureBeat. Retrieved from https://venturebeat.com/2025/03/25/nvidias-blackwell-gpu-offers-10x-leap-in-ai-training-efficiency/ [3]: AMD's MI400 Series GPUs to deliver similar performance to Nvidia's Rubin chips. (2025). Tom's Hardware. Retrieved from https://www.tomshardware.com/news/amd-mi400-series-gpus-rubin-chips,60535.html [4]: AMD and Nvidia to pay 15% revenue share on AI chip sales into China. (2025). CNET. Retrieved from https://www.cnet.com/tech/computing/amd-and-nvidia-to-pay-15-revenue-share-on-ai-chip-sales-into-china/ [5]: AMD's growth trajectory in AI chips less aggressive than Nvidia's. (2025). The Verge. Retrieved from https://www.theverge.com/2025/04/15/amd-ai-chip-growth-less-aggressive-than-nvidia/