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- After dominating the CPU market, it appears that AMD is making quite progress in the GPU market.
- According to an analyst, the company is expected to close the gap with Nvidia by 2026.
- Recently, the company’s share price also increased by 7%, further backing such claims.
AMD is no stranger when it comes to developing Graphics Cards and Processors. While the company is an expert in the latter, it might need some work in the former category. The tech giant does have some of the best, or perhaps even the best, budget gaming GPUs, but it still lacks a bit in the AI technology, which gives Nvidia the upper hand.
However, the company appears to be focusing on its weaknesses, as an analyst has revealed that it is on track to attain the same heights as Nvidia, which has caused the company’s share price to increase by 7%.
Why it matters: Nvidia used to dominate the GPU market alone, but now AMD has made significant progress, making it a solid competitor.
CFRA analyst Angelo Zino is the one who revealed why the firm decided to increase AMD’s share price. The price has been increased from $125 to $165. Zino thinks that in 2026, the company can close the gap with Nvidia, which is arguably a strong claim.
Fans should note that these claims are not just thrown in the air by the analyst; these are backed with facts, but in this market, you can never be too sure of the future. As of now, Nvidia is leading the market with its AI GPUs, but the analyst strongly believes that AMD can also be very successful in the AI GPU market.
CRFA also believes that the acquisition of ZT Systems will play a vital role in AMD closing the competitive gap with Nvidia. That is because this deal will enable the company to broaden its customer base, which will help it attract major players like OpenAI and Oracle.
For those not in the know, these companies mentioned above play a significant role in the AI industry, and including them would be a huge win for AMD. That said, it may still be too soon to decide what the company’s future holds, but it does look bright.
What do you think about AMD potentially closing the competitive gap with Nvidia? Do you think the company can achieve this tremendous victory by 2026? Share your thoughts with us in the comments section below or join the official Tech4Gamers forums for discussion.
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[News Editor]
Obaid is pursuing a Law degree while working as a content writer. He has worked as a gaming writer for over three years because of his passion for the medium and reporting the latest updates in the industry. Having played hundreds of games, Obaid finds himself coming back to Elden Ring, Cyberpunk 2077, and Red Dead Redemption 2, with these games being among his favorites. He has also been mentioned on highly regarded websites, such as Wccftech, Metro UK, PS Lifestyle, GamePressure, VGC, and Gamespot.
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