Is It Time to Dump Nvidia Stock for Advanced Micro Devices After Microsoft Announcement?

Core Viewpoint - Microsoft is offering AMD's MI300X AI chips through its Azure cloud service as an alternative to Nvidia's H100 GPUs, indicating a competitive landscape in the AI chip market [1][2] Group 1: Market Dynamics - Nvidia and AMD are both struggling to meet the high demand for their GPUs, with TSMC's advanced packaging capacity fully booked for the remainder of this year and next [2][3] - The tight GPU market presents an opportunity for AMD to increase its market share, especially as Nvidia's chips become harder to obtain [5] Group 2: Company Strategies - TSMC is expanding its production capacity by building new fabrication facilities in Arizona, Japan, and Germany to meet the growing demand for AI and HPC chips [3][6] - TSMC is also advancing its technology to develop 2-nanometer chips, which will enhance production capacity and reduce costs [3] Group 3: Investment Opportunities - Investors are encouraged to consider buying Nvidia, AMD, and TSMC stocks due to the massive demand for high-performance computing chips [4] - Nvidia remains the leader in the GPU market, with a strong growth trajectory and the ability to sell as many chips as its foundry partners can produce [4] - AMD has raised its expected full-year data center GPU revenue from $3.5 billion to $4.0 billion, indicating strong potential for growth [5] - TSMC is currently the cheapest stock among the three, trading at about 24 times forward P/E, making it an attractive investment option [6][8] - Nvidia trades at a forward P/E of 37, while AMD is the most expensive at over 47, suggesting varying levels of investment potential among the companies [8]