AMD Stock and Intel Crushed Nvidia in the First Half. Here's My Prediction for the Second Half.

Yahoo Finance ·

Nvidia ( NVDA 1.39% ) has been the "go-to" artificial intelligence (AI) stock for a number of years. Since this tech giant is the No. 1 designer of AI chips, it's generated mind-boggling revenue growth that's reached record levels and proven itself to be a winner in the AI boom. So it's no surprise that investors have turned to the stock, pushing it to a gain of about 900% over the past five years. But in the first half of this year, a shift took place. Investors rotated out of some of the biggest AI winners -- like Nvidia -- and picked up shares of AI stocks that hadn't yet gained as much. That movement helped fellow chip companies Advanced Micro Devices ( AMD 4.26% ) and Intel ( INTC 5.25% ) soar. Climbing 171% and 278%, respectively, in the first half, they crushed Nvidia. The AI chip giant advanced 7.2%, which is a pretty small gain for this stock. Will AMD and Intel keep crushing Nvidia? Here's my prediction for the second half. Before we get to my prediction, though, let's catch up on how these companies have approached the AI opportunity so far. Nvidia was the first to market with graphics processing units (GPUs) tailored to the needs of AI, allowing the company to build out its leadership here. Intel and AMD have traditionally been leaders in another type of processor: the central processing unit (CPU), the main processor in computers.

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