AMD’s Lisa Su just handed Nvidia investors the best kind of news: More proof that the AI chip race is far from over

Nvidia Investors Just Got Big News From AMD’s Lisa Su—And It Changes Everything- The story of Nvidia stock just took an unexpected turn—and not because of anything Nvidia did. Instead, it’s what AMD CEO Lisa Su just shared that gave investors new reason to believe that the AI revolution is still going strong.

On the surface, AMD’s latest quarterly report looks like great news for AMD shareholders. But if you look a bit closer, it might actually be even better news for Nvidia investors.

Is AI demand really slowing down—or are we just getting started?

There’s been a lot of talk lately that AI growth is slowing. Between global tariffs, tighter restrictions on exports to China, and high expectations already baked into share prices, some investors are worried the AI rally might be cooling off.


But AMD’s earnings report just told a very different story.

On Tuesday, May 6, AMD posted its results for the first quarter of 2025. The company reported revenue of $7.4 billion, up 36% year-over-year, and adjusted earnings per share (EPS) of $0.96, a 55% jump from a year ago. Both numbers blew past Wall Street expectations, which had forecast $7.12 billion in revenue and $0.93 EPS.

That’s the kind of statement that should catch Nvidia investors’ attention.

How did AMD's data center business outperform—and what does that mean for Nvidia?

The real star of AMD’s earnings report was its data center segment, which saw revenue jump 57% year-over-year to hit $3.7 billion. That’s a clear signal that enterprise demand for AI and cloud computing infrastructure is still rising fast.

While AMD is gaining ground with its new AI chips like the MI300X, Nvidia still holds the lion’s share of the market—around 98% of the data center GPU space, by most estimates over the past two years.

So if AMD is seeing this kind of explosive growth in AI hardware demand, it strongly suggests the broader market is expanding—and Nvidia, as the dominant player, is likely capturing the bulk of that growth.

Why are Nvidia shares down despite strong financials?

Nvidia’s most recent results, for its fiscal Q4 ending Jan. 26, 2025, were jaw-dropping:

• Revenue: $39.3 billion (up 78% YoY)
  
  
• Earnings per share (EPS): $0.89 (up 82% YoY)
  
  

Yet the stock has dropped about 14% since the report. That decline has more to do with investor concerns—things like AI adoption slowing or trade restrictions with China—than with Nvidia’s actual business performance.

But AMD’s strong data center growth and bullish AI outlook are now easing some of those fears, giving Nvidia shareholders fresh confidence.

What’s next for AI growth—and how big is the opportunity?

Let’s talk numbers. The generative AI market alone is projected to be worth:

• $1.3 trillion by 2032, according to Bloomberg Intelligence
  
  
• $2.6 trillion to $4.4 trillion per year, says McKinsey & Company
  
  
• Up to $15.7 trillion by 2030, estimates PwC
  
  

Even though forecasts vary wildly, they all agree on one thing—AI is going to be a massive economic force.

Is Nvidia stock undervalued right now?

Despite its leadership position and record profits, Nvidia stock is now trading at just 26 times forward earnings—a relatively modest valuation for a high-growth tech company.

Combine that with the AI sector’s long-term momentum, and Nvidia starts to look like a rare buying opportunity, especially after the recent pullback in price.

Investors who believe in the future of AI may see this as a second chance to buy into the market leader before the next leg up.

So what’s the bottom line for Nvidia and AI investors?

Lisa Su’s comments and AMD’s breakout earnings didn’t just boost AMD stock—they also helped validate the entire AI investment thesis.

Strong data center growth, rising EPS, and expanding AI demand suggest that the AI boom is far from over.

While AMD is proving it can carve out a piece of the AI pie, Nvidia remains the top dog—and now it’s trading at a discount. For long-term investors, that’s not just good news.

FAQs:

Q1: Is Nvidia stock still a good buy in 2025?
Yes, Nvidia stock looks attractive due to strong AI growth and solid profits.

Q2: How does AMD’s AI growth impact Nvidia?
AMD’s AI strength confirms high demand, which benefits Nvidia’s leading GPU business.