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Nvidia (NASDAQ:NVDA) shares inched up Wednesday after a bullish tone from AMD (NASDAQ:AMD) CEO Lisa Su rekindled confidence in the AI chip sector. Her upbeat comments on artificial?intelligence growth reassured investors who had been wondering if the AI boom was losing steam.
AMD reported record quarterly revenue of $7.4 billion, up 36% year?on?year, with data?center sales vaulting 57% to $3.7 billion, comfortably above analysts' forecasts. Su described the results as an excellent start to 2025, highlighting robust AI and data?center momentum.
Still, export?control headwinds loom. AMD warned U.S. semiconductor restrictions could shave about $1.5 billion off its annual top line. Nvidia faces an even larger hit: a $5.5 billion charge tied to its H20 chips earmarked for China, and Jefferies analysts project up to $10 billion in lost revenue.
Super Micro Computer (NASDAQ:SMCI) posted results at the upper end of its guidance but offered subdued revenue forecasts, as some customers delay purchases amid Nvidia's shift from Hopper to Blackwell GPUs.
Despite these challenges, Nvidia remains the AI?GPU market juggernaut, commanding nearly 98% of data?center GPU revenue. As the overall AI?chip market expands, analysts say Nvidia is well?positioned to capitalise on the next wave of demand.
This article first appeared on GuruFocus.