AMD and Intel Gained Ground While Nvidia Lagged in AI Trade Shift
On September 4, AMD gained 4.7% and Intel rose by 4.5%, while Nvidia added only 0.8%. This divergence suggests investors are broadening their focus within the AI trade beyond just Nvidia, though it remains unclear if this is a lasting trend or short-term fluctuation. AMD reported record second-quarter revenue of $11.5 billion, with Data Center accounting for 58% of its business. The company's offerings include MI450 accelerators and sixth-generation EPYC processors, which are attracting customers looking for alternatives to Nvidia’s ecosystem. Intel also saw a significant increase in AI-related revenue, reporting $6.3 billion from the segment—a year-over-year rise of 59%. However, both companies face challenges related to software maturity and capital efficiency. Hedge fund holdings increased for both AMD and Intel during Q2 2026 compared to Q1, indicating growing institutional interest in these stocks as alternatives within the AI sector. Despite this positive momentum, long-term success will depend on factors such as deployment rates, margins, free cash flow generation, and software competitiveness.
Topics: AI trade AMD hedge fund activity Intel Nvidia semiconductors