AMD vs. NVDA: RDNA 5 GPUs May Finally Even the Playing Field Between AMD and Nvidia

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Advanced Micro Devices AMD +2.46% ▲ stock rallied on Monday alongside reports that its RDNA 5/UDNA architecture is close to being finished, and will give it a major edge in the semiconductor company’s battle against rival GPU maker Nvidia NVDA +2.11% ▲ .

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According to the latest reports, AMD is rebuilding its architecture from the ground up, with plans to integrate Dual Issue VALU (Vector Arithmetic Logic Unit). This would reportedly double the processing performance of the company’s chips in certain workloads. While Dual Issue VALU has been around since RDNA 3, it wasn’t fully implemented due to restrictions of that architecture.

AMD has long competed against Nvidia in the GPU space, but it has had trouble growing its market share against Nvidia’s dominance. For example, only 10.61% of Steam users have a GPU from AMD in their computers. To put that in perspective, 84.68% of users have a GPU from Nvidia. This large gap shows how hard it has been for AMD to compete against Nvidia.

AMD and Nvidia Stock Movements Today

AMD stock was up 2.84% on Monday but was still down 7.13% year to date. Even so, the stock remained up 84.9% over the past 12 months. AMD trading activity today saw some 14 million shares change hands, compared to a three-month average daily trading volume of about 38.33 million shares.

Nvidia stock rallied 2.07% this morning but has slipped 1.35% year to date. Despite that, the stock has rallied 50.8% over the past 12 months. NVDA trading activity today saw some 66 million shares change hands, compared to a three-month average daily trading volume of roughly 184 million shares.

AMD vs. NVDA: Which Stock Do Analysts Favor?

Turning to the TipRanks stock comparison tool, traders can see which of these two stocks analysts prefer. Nvidia has the higher analysts’ consensus rating at Strong Buy, compared to a Moderate Buy rating for AMD. NVDA stock’s upside potential is also higher at 48.68%, though AMD stock is close behind it with a possible 43.56% upside.

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