Nvidia Corp NVDA just handed Advanced Micro Devices Inc AMD a fresh headache. The chip giant is teaming up with Intel Corp INTC in a sweeping $5 billion collaboration to co-develop custom CPUs, GPUs, and AI infrastructure, leaving AMD on the outside looking in at a new two-horse race in both data centers and PCs.Track AMD stock here.Why This Matters For AMDFor years, AMD has positioned itself as the alternative to Nvidia in AI GPUs and Intel in CPUs, carving out share with its EPYC server processors and Rad ...

Group 1 - Advanced Micro Devices (AMD) has announced a $6 billion increase to its share buyback program, bringing the total to $10 billion [3] - AMD's stock has declined approximately 30% over the past year, despite ramping up buyback activity [5] - The company generated $7.4 billion in revenue in Q1, reflecting a 36% year-over-year increase, although there is deceleration in gaming and embedded segments [6] Group 2 - The data center business accounts for about half of AMD's total revenue and has a higher operating margin compared to other segments [7] - AMD has attracted notable customers from Nvidia, including Oracle, Microsoft, and Meta Platforms, for its MI300 accelerators [8] - The new buyback program indicates management's belief that AMD shares are undervalued, particularly in light of its AI chip business still being in early stages [9] Group 3 - AMD's forward price-to-earnings (P/E) multiple may not seem cheap, but there is a clear valuation compression trend [11] - The timing of the new repurchase authorization aligns with AMD's upcoming launch of new GPU architectures, suggesting management's confidence in long-term demand [13] - AMD's stock is down nearly 50% from its all-time high, presenting a potential buying opportunity for long-term investors [14]

Nvidia has emerged as one of the most valuable companies in the world thanks to the AI movement, but the company's long-term growth looks questionable.Megacap technology stocks have been some of the biggest and longest-standing beneficiaries of the artificial intelligence (AI) revolution. While growth stocks in the tech sector have experienced at least some form of action since AI emerged as a megatrend, these gains have been fleeting for most companies -- leading to prolonged periods of outsize volatility. ...