Is the fear of custom AI chips exaggerated or justified?
The 14% pullback from the 52-week high due to concerns about increased competitive pressure from custom AI chips is likely exaggerated.
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The AMD stock has corrected 14% from its 52-week high. I see this as an opportunity for AMD, as concerns about eroding market shares due to custom chips seem to be exaggerated. Following the Broadcom figures from September 5, 2025, AMD experienced a larger pullback, as fears arose that the trend would shift strongly towards custom chips after the $10 billion deal with OpenAI. NVIDIA dominates the AI chip market for data centers with around 80%. AMD is significantly smaller, but it is working intensively with Meta, which will take the upcoming...
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