Advanced Micro Devices, Inc. (NASDAQ:AMD) is shifting its focus to the gaming GPU market, prioritizing a strategy to gain a larger market share.
This approach marks a significant shift away from competing directly with Nvidia Corp's (NASDAQ:NVDA) highest-end gaming GPUs, at least for now, Tom's Hardware cites Jack Huynh, AMD's Senior Vice President and General Manager.
In an interview during IFA 2024, Huynh emphasized that AMD aims to capture 40%-50% of the total addressable market by focusing on mainstream and mid-range GPUs.
Nvidia currently holds 88% of the discrete GPU market, leaving AMD with just 12%, compelling the latter to focus on building scale.
AMD remains engaged in many activities to boost shareholder value as analysts continue to claim Nvidia as the key AI beneficiary.
Recently, AMD tapped Nvidia's Keith Strier, who was responsible for boosting Nvidia's commercial engagements with foreign governments. AMD also shared plans to snap AI server company ZT Systems for $4.9 billion as its Ryzen 9000 series failed to gain traction.
AMD has been up 28% in the last 12 months versus Nvidia, which has gained 128%.
Semiconductor and AI-linked stocks, including Nvidia and AMD, faced a continued selloff despite strong quarterly results from Nvidia and Broadcom Inc (NASDAQ:AVGO). VanEck Semiconductor ETF (NASDAQ:SMH) and iShares Semiconductor ETF (NASDAQ:SOXX) dropped over 12% in the past five days.
Price Actions: AMD stock is up 1.37% at $136.20 at the last check on Monday. NVDA is up 1.22% at $104.05.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock