Core Viewpoint - The rapid advancement of artificial intelligence (AI) is significantly impacting the stock market, primarily driven by state-of-the-art semiconductor solutions from companies like Nvidia and AMD [1]. Industry Summary - The World Semiconductor Trade Statistics (WSTS) forecasts an 8.5% growth in the chip sector, reaching $760.7 billion by 2026, indicating strong potential for investment opportunities [2]. - Global data center spending is projected to reach $3–$4 trillion by 2030, with Nvidia potentially capturing 55% to 60% of the AI market, leading to estimated data-center revenue of $1–1.2 trillion by the end of the decade [3][4]. Nvidia Summary - Nvidia remains the leader in graphics processing units (GPUs), reporting record sales of $46.7 billion in fiscal Q2 2026, a 56% increase year-over-year, and controlling over 90% of the data center market [2]. - Wall Street shows strong optimism for Nvidia, with 35 "Buy" ratings and an average 12-month price target of $210.08, representing a 23.03% upside from current levels [5]. AMD Summary - AMD's stock faced challenges, with a 6% decline following strong quarterly results from Broadcom, which raised concerns about competition in the AI hardware market [7][8]. - HSBC reduced AMD's price target from $200 to $185, with the current 12-month average target at $184.74, indicating a range of estimates from $120 to $230 [9]. - Despite challenges, AMD is expected to leverage partnerships with companies like IBM and potential cloud players to enhance its market position, although it remains significantly behind Nvidia in data center revenue [11][12].