![AMD and Intel Outperform Nvidia in H1 2024: Analyst Predicts Second Half Recovery for AI Chip Leader]](https://wp.fifu.app/globalindepth.com/aHR0cHM6Ly9zLnlpbWcuY29tL2xvL215c3RlcmlvL2FwaS8yMEVGOThGODhBRkI4RkZDMTZCREE0MTM4OTFFRTJCQjc4QjU4NUQ5MDc1NDExRTlDQTE3NUNFRUE0OEQ4Qjk5L3N1YmdyYXBobXlzdGVyaW8vcmVzaXplZmlsbF93MTIwMF9oNjc1O3F1YWxpdHlfODA7Zm9ybWF0X3dlYnAvaHR0cHM6JTJGJTJGbWVkaWEuemVuZnMuY29tJTJGZW4lMkZtb3RsZXlmb29sLmNvbSUyRmY0OWMzZmVkMTg2ZThlOWZhZDFkNzRiMWVhZWExY2Ew/97cf273b5840/amd-and-intel-outperform-nvidia-in-h1-2024-analyst-predicts-second-half-recovery-for-ai-chip-leader.webp?w=0&h=0&c=0&p=52984 "AMD and Intel Outperform Nvidia in H1 2024: Analyst Predicts Second Half Recovery for AI Chip Leader]")
AMD and Intel Outperform Nvidia in H1 2024: Analyst Predicts Second Half Recovery for AI Chip Leader]
Nvidia (NASDAQ: NVDA) has dominated as the premier artificial intelligence stock for years, leveraging its position as the leading designer of AI chips to deliver unprecedented revenue growth and record-breaking performance. This dominance pushed the stock up approximately 900% over the past five years, attracting massive investor attention.
However, the first half of 2024 marked a notable shift in market dynamics. Investors rotated toward AI stocks that had previously lagged, lifting shares of semiconductor peers Advanced Micro Devices (NASDAQ: AMD) and Intel (NASDAQ: INTC). AMD shares surged 171% while Intel climbed 278%, significantly outpacing Nvidia’s modest 7.2% gain during the same period.
Looking ahead, semiconductor analyst Adria Cimino forecasts a potential rebound for Nvidia in the second half. The prediction centers on two key factors: Nvidia’s expansion into the CPU market and the company’s relatively attractive valuation compared to peers.
Nvidia is set to launch its first-ever standalone CPU this fall as part of the Vera Rubin platform, targeting the $200 billion CPU market where it currently holds minimal presence. The company also plans to introduce a superchip combining GPU and CPU technology for personal computing applications. While complete market leadership may prove challenging, Cimino expects Nvidia to dominate data center CPU segments, particularly as these chips become essential for powering “agentic AI” applications anticipated to drive the next phase of AI growth.
The valuation argument further supports a potentialNvidia recovery. Trading at approximately 22x forward earnings estimates, Nvidia appears undervalued relative to AMD and Intel, whose valuations have become stretched following their recent performance rallies. This disparity could prompt investors to rotate back toward Nvidia as valuations normalize.
Data from YCharts shows Nvidia’s forward P/E ratio, providing additional context for the valuation comparison between these semiconductor leaders.