Semiconductor Surge: Can AMD Outpace NVIDIA’s AI Dominance?

The semiconductor sector is red-hot in June 2025, with stocks like $NVIDIA(NVDA)$ and $Advanced Micro Devices(AMD)$ leading a rally fuelled by AI demand and easing tariff concerns. On June 24, 2025, AMD surged 6.8%, while NVIDIA gained 2.6%, and $Broadcom(AVGO)$ hit all-time highs. NVIDIA’s CEO Jensen Huang sold shares worth nearly $900 million, yet the company’s $3.6 trillion market cap remains near record levels. With the semiconductor market projected to grow to $1 trillion by 2030, driven by AI and data centres, investors are asking: Is there still upside in NVIDIA and AMD? Let’s analyse their performance, NVIDIA’s annual meeting focus, and investment opportunities, using Yahoo Finance share prices as of market close on June 24, 2025.

Semiconductor Sector Rally

On June 24, 2025, the VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX) climbed over 3.8%, reflecting a risk-on market after President Trump’s ceasefire call in the Middle East eased oil prices and geopolitical fears. AMD jumped 6.8% to $138.43, while NVIDIA rose 2.6% to $147.90, nearing its all-time high of $153.11 from January 7, 2025. Broadcom soared 3.9% to $263.77, hitting a new 52-week high after HSBC’s buy upgrade, citing its Application-Specific Integrated Circuits (ASICs) strength. The PHLX Semiconductor Index (SOX) up 3.8%, signalling robust sector momentum.

NVIDIA’s Dominance and Annual Meeting Focus

NVIDIA’s 80-90% share of the AI GPU market underpins its $3.6 trillion valuation. Its fiscal Q1 2025 revenue hit $44.1 billion, up 69% year-over-year, with data centre revenue at $39.1 billion. At its annual meeting in June 2025, NVIDIA emphasized its Blackwell Ultra and Vera Rubin chips, designed for advanced AI inference and training. CEO Jensen Huang highlighted “exponential computing scale” for reasoning AI, but his sale of 6 million shares (worth ~$900 million) raised eyebrows, though he retains over 35 million shares. Despite a $5.5 billion China export charge in Q1, NVIDIA’s Saudi Arabia deal for 18,000 GB300 chips signals global demand. However, tariff risks and competition from AMD and Huawei loom.

AMD’s Rising Challenge

AMD’s stock at $138.43 reflects a 14.6% YTD gain from $120.79 (Dec 31, 2024), driven by its MI350 series GPUs, offering 4x performance over MI300X and 40% more tokens per dollar than NVIDIA’s B200. Posts on X highlight AMD’s focus on AI inference, a market potentially 100x larger than training. AMD’s data centre revenue grew 58% in Q4 2024, and its MI350 shipments start mid-2025. With a PEG ratio of 0.44 (vs. NVIDIA’s 0.85), AMD appears undervalued, but China export curbs cost it $800 million, and NVIDIA’s CUDA software remains a hurdle.

Risks and Opportunities

NVIDIA’s premium valuation (24x 2025 EPS) faces risks from tariff uncertainty and competitors like Broadcom and Marvell, who are scaling ASICs for Amazon and Google. AMD’s lower valuation and inference focus offer upside, but its 5% data centre GPU share lags NVIDIA’s dominance. Geopolitical tensions, like a potential Taiwan conflict, could tank both stocks by 10-20%, per BCA Research. Conversely, easing tariffs and AI spending (e.g., Amazon’s $100 billion capex) support growth.

Table: NVIDIA vs. AMD Performance (6/24/2025)

Sources: Yahoo Finance

Trading Ideas

a) Long AMD (Entry: $137-$139, Target: $155, Stop-Loss: $125)

Rationale: AMD’s 14.6% YTD gain and MI350 momentum suggest 10% upside. Its low PEG ratio and inference focus appeal to value investors.
Risk: Tariff hikes or NVIDIA’s CUDA dominance could cap gains.

b) Long NVDA (Entry: $145-$148, Target: $160, Stop-Loss: $135)

Rationale: NVIDIA’s Saudi deal and Blackwell chips support 8% upside, per BofA’s $160 target. Its 80% AI GPU share ensures stability.
Risk: CEO share sales and China curbs may trigger volatility.

Conclusion

The semiconductor rally on June 24, 2025, underscores NVIDIA and AMD’s AI-driven potential. NVIDIA’s market leadership and new chips make it a safe bet, but its high valuation and tariff risks warrant caution. AMD’s undervaluation and inference focus offer higher growth potential, though it faces competitive hurdles. Investors should weigh NVIDIA’s stability against AMD’s value play, using stop-losses to manage volatility.

As always, Do Your Own Due Diligence and ensure risk management > prediction. Trade smart, stay adaptable, and don’t let emotions chase candles.

Waiting Game: Nvidia at Highs, Add at $170 or Wait $150?

Nvidia’s Q2 revenue rose over 55%, but revenue in China dropped sharply by 24%, wiping out $93B in market value. After the last earnings report, Nvidia pulled back and consolidated before breaking to new highs, eventually climbing to $180. This time, the earnings aren’t actually bad — the recent surge just front-loaded the gains. 1. Is $170 the start of Nvidia’s new bull market, or should we wait for a pullback to the $150 support level? 2. What’s your choice — is it ever too late to buy Nvidia? 3. How will AVGO affect Nvidia stock price?

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