Shares of both Nvidia and AMD experienced declines on Tuesday in New York, despite separate assurances from their CEOs regarding strong demand. AMD faced the steeper drop, falling 3 per cent near 2pm after an initial 1 per cent gain, while Nvidia shares oscillated before settling into negative territory after a prior rise.
AMD CEO Lisa Su, during a Bloomberg Television interview, emphasised the growing practical applications of artificial intelligence. She stated that the broader adoption of AI by 2026 would dispel any notions of it being merely a passing trend confined to the investment sphere. AMD is a global semiconductor company, specialising in high-performance computing, graphics, and visualisation technologies. According to Su, the computational power required to meet escalating demand will need to increase exponentially within the next four to five years, reinforcing that the industry remains in the nascent stages of leveraging AI’s full potential.
Separately, Nvidia CFO Colette Kress indicated at a JPMorgan event that the company’s optimistic revenue projections from October have only improved. Nvidia Corporation designs and manufactures computer graphics processors, chipsets, and related multimedia software. While positive about overall prospects, Kress noted uncertainty surrounding China’s potential contribution to Nvidia’s revenue. Nvidia CEO Jensen Huang recently unveiled details about a new chip slated for release in the latter half of the year, marking continued innovation in the sector.
