Full Speed Ahead! Can NVIDIA and AMD Keep Running Till AMD Earnings?

If you’ve been watching the semiconductor space this year, it’s almost impossible not to feel a mix of awe and disbelief at how far and fast the leaders have run. NVIDIA and AMD—the twin engines of the AI chip revolution—are once again front and centre as the market’s darlings. Both stocks have been in relentless uptrends, powered by an unstoppable wave of artificial intelligence hype, explosive revenue growth, and the world’s biggest tech firms shoveling money into data centers. With AMD set to report earnings on August 5, and Bank of America bumping its AMD price target to $200 on surging AI shipment potential, the stakes have rarely felt higher.

The million-dollar question: Can NVIDIA and AMD keep running at full speed for another two weeks? Is this rally sustainable, or are investors about to run out of steam before the next round of earnings? And, of course, who’s likelier to cross that symbolic $200 finish line first?

Let’s break down the forces at play, the risks, and the runway left for both chip giants.

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The AI Tsunami: Why the Rally Isn’t Just Hype

Let’s get one thing clear up front: This isn’t just another semiconductor cycle. What’s driving NVIDIA and AMD to dizzying heights is a global, secular shift toward AI—one that’s upending not just tech, but the entire economy. Every major company, from Apple to Amazon to Google to Tesla, is racing to build out AI infrastructure, and that means insatiable demand for the latest, greatest GPUs and accelerators. It’s no exaggeration to say that NVIDIA chips are the “new oil” of the digital age, and AMD is right on its heels.

NVIDIA:

The undisputed king of AI silicon. Its H100 and now Blackwell GPUs are the backbone of every serious AI project, whether it’s OpenAI training GPT-5, Google scaling up Gemini, or Facebook rolling out new Llama models. The company’s recent quarter blew past Wall Street expectations, with data center revenue up triple digits and CEO Jensen Huang making the case that AI adoption is just getting started. With cloud titans announcing multi-billion-dollar capex plans—Alphabet just dropped a $10 billion bombshell—every dollar spent on AI infrastructure is another boost to NVIDIA’s pipeline.

AMD:

For years, AMD was the David to NVIDIA’s Goliath. Now, it’s emerging as a true challenger. Its MI300X accelerators are gaining traction with cloud providers and supercomputers, and AMD’s push into custom AI silicon is being rewarded by hyperscalers looking to diversify away from NVIDIA. Bank of America’s new $200 price target reflects that the market is only beginning to grasp AMD’s AI upside, especially as shipments ramp in the second half of 2025. With the stock up over 2% just on Friday, momentum is firmly on AMD’s side.

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Capex Explosion: The Rising Tide That Lifts All Chips

What’s keeping this rally going, even after such epic runs? In a word: capex. When the world’s biggest companies raise their capital expenditures, especially in AI and cloud, it’s a direct catalyst for chipmakers.

• Alphabet/Google: $10 billion in new capex is the latest, but expect similar or even larger plans from Amazon, Microsoft, Meta, and Apple in the coming weeks.

• Data Center Arms Race: Every dollar spent on AI infrastructure is a vote of confidence in continued demand for advanced chips—GPUs, networking, storage, and more.

• Supply Chain Investments: Both NVIDIA and AMD are deepening ties with foundries like TSMC to secure future capacity, ensuring they remain at the heart of the AI gold rush.

Big Tech’s upcoming earnings could easily bring more capex bombs, each one acting as rocket fuel for chip stocks. If Apple or Amazon join the capex surge, the market’s enthusiasm for NVIDIA and AMD could hit a new gear.

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Who Hits $200 First—AMD or NVIDIA?

This is the hottest horse race in tech. AMD, at $166, is closer on paper, and with BofA’s new $200 target, you can bet traders are eyeing every $5 increment as a milestone. The next two weeks will be crucial:

• AMD Momentum: If AI shipment news or another analyst upgrade hits before earnings, FOMO could drive the stock to $180 or even $190 in a flash. The earnings call on August 5 is a potential launchpad—strong guidance or another “beat and raise” could push AMD over the top.

• NVIDIA Fundamentals: Already over $170, NVIDIA’s sheer earnings power, supply chain dominance, and lock-in with hyperscalers mean any positive capex news could send it sprinting to $200. Its market cap recently broke $4 trillion—if the next round of big tech earnings are bullish, NVIDIA might retest its all-time highs in days, not weeks.

If AMD continues its current pace and earnings land well, it could hit $200 first on momentum alone. But if NVIDIA gets even a hint of another capex-driven windfall, its stronger fundamentals and deeper institutional ownership could see it leapfrog quickly. There’s a real chance both stocks flirt with $200 before the summer is out.

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Risks: Can the Run Continue?

Of course, no rally is without risk. Here’s what could trip up the semiconductor bulls:

• Earnings Disappointments: With expectations sky-high, even a “meet” instead of a “beat” could spark sharp sell-offs. Watch out for any hint that AI demand is slowing or that supply chain issues are holding back shipments.

• Rotation and Profit-Taking: Four months of gains have left both stocks technically overbought. If traders rotate into lagging sectors or take profits ahead of earnings, we could see a temporary pullback.

• Macro Headwinds: Rising interest rates, geopolitical flare-ups (think US-China tech tensions), or a big risk-off event could knock even the best stocks lower.

• Competitive Threats: While NVIDIA and AMD are dominant now, tech moves fast. Any sign that Intel or custom silicon from Amazon/Google is catching up could dent sentiment.

Still, as long as Big Tech keeps the capex fire burning and AI remains the word of the year, pullbacks are more likely to be buying opportunities than signs of a top.

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How Much Longer Can They Run?

Momentum is a powerful thing—especially when it’s backed by real revenue, profit growth, and global megatrends. As long as earnings and capex surprises keep coming, both NVIDIA and AMD have room to run into and potentially beyond the next earnings cycle.

• NVIDIA: If it breaks through $180 with conviction, $200 is in sight—especially if capex announcements and AI use cases keep expanding. Institutional buying is still strong, and options activity shows traders are betting on more upside.

• AMD: A positive pre-earnings news cycle, followed by a “beat and raise” on August 5, could send AMD on a run similar to what NVIDIA did after its last blowout quarter. The market is eager to anoint a true challenger in AI chips, and AMD is perfectly positioned.

With both stocks, the biggest risk is simply being late to trim profits when the music stops. But as long as AI, data center demand, and capex headlines dominate the narrative, dips are likely to be shallow and short-lived.

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Strategy: How to Play It Now

• Momentum Trading: For short-term traders, riding the wave into AMD earnings makes sense, but be nimble. Volatility will spike around results, and quick profit-taking could hit both names.

• Buy-the-Dip: For long-term investors, any sharp correction before or after earnings is a gift. Both companies have strong runways for years to come.

• Options: Use calls or call spreads to capture upside with limited risk, or buy protective puts ahead of earnings if you’re sitting on big gains.

• Diversification: Don’t forget to balance with other sectors. The rally is hot, but a crowded trade can unwind fast if sentiment shifts.

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Conclusion: The Finish Line Isn’t the End

NVIDIA and AMD have defied gravity in 2024 and 2025, and the next two weeks could be the most exciting yet. With capex still pouring in and AI demand only growing, both stocks could hit new highs before AMD’s earnings. Whether AMD’s momentum wins the sprint or NVIDIA’s fundamentals win the marathon, the story of the AI chip race is far from over.

If you’re holding, stay focused and be ready to trim when sentiment gets too euphoric. If you’re waiting for an entry, keep your eyes peeled for the next dip—because in this market, it won’t last long. The AI revolution is real, and the two giants driving it show no sign of slowing down just yet.