Advanced Micro Devices Inc (NASDAQ:AMD) stock ticked lower on Thursday. The stock is trending on pin action after NVIDIA Corp’s (NASDAQ:NVDA) strong quarterly results kept investor attention on AI-chip demand and data-center spending.

Nvidia Results Keep AMD In Focus

Nvidia stock jumped more than 7% premarket on Thursday after the company posted second-quarter revenue of $96.22 billion, topping the $92.18 billion estimate. Adjusted EPS of $2.22 also beat the $2.10 estimate.

Nvidia guided third-quarter revenue to between $105.84 billion and $110.16 billion and ended the quarter with $99.0 billion remaining under its share repurchase authorization.

The upbeat AI demand commentary kept AMD in focus because investors often use major AI infrastructure results to assess expectations for GPU demand and data-center spending. S&P 500 futures rose 0.3% before the opening bell.

AMD Competes Directly With Nvidia In AI Chips

AMD and Nvidia compete across GPUs, data centers and artificial intelligence.

Nvidia leads the market in AI accelerators and discrete GPUs, while AMD competes with its Instinct GPU line and Ryzen and EPYC processors.

Both companies design their chips internally and rely primarily on Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) for manufacturing.

AMD Analyst Consensus & Recent Actions:

AMD stock carries a Buy rating with an average price forecast of $595.91. Recent analyst moves include:

  • Raymond James: Upgraded to Strong Buy (Raises Forecast to $641.00) (Aug. 25)
  • BMO Capital: Initiated with Outperform (Forecast $550.00) (Aug. 21)
  • Argus Research: Buy (Raises Forecast to $625.00) (Aug. 6)

Top ETF Exposure

  • iShares Semiconductor ETF (NASDAQ:SOXX): 8.10% Weight
  • CoreValues America First Technology ETF (NYSE:USMD): 7.74% Weight
  • ARK Next Generation Internet ETF (NYSE:ARKW): 7.00% Weight

Significance: Because AMD carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

AMD Price Action: Advanced Micro Devices shares were down 0.49% to $478.55 at the time of publication on Thursday, according to Benzinga Pro data.

Read Also: What's Going On With Broadcom Stock Thursday?

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