In a surprising turn of events, Nvidia stock climbed 0.5% in premarket trading on Wednesday and the credit goes, in part, to a bold statement made by none other than AMD’s CEO Lisa Su. Her confident tone around AI growth has sent a strong signal to the entire semiconductor market and Nvidia investors are paying close attention.

Investors were recently growing anxious about whether AI momentum was fading. New insights into the Hollywood-reel fast-moving AI chip landscape were recently thrown by the fresh earnings coming through from Advanced Micro Devices (AMD) and Super Micro Computer (SMCI). 

AMD had a surprisingly good quarter with record revenues of $7.4 billion, increasing by 36% compared to last year. Even more extraordinary data center revenues grew 57% vs. last year to $3.7 billion, smashing analysts’ expectations.

Lisa Su didn’t hold back. She called it an outstanding start to 2025, emphasizing expanding data center and AI momentum. For Nvidia investors, this isn’t just good news, it’s reassurance that the AI revolution is still going full throttle.

Export Controls Pose Challenges, But Not Defeat

Not everything is smooth sailing. AMD also acknowledged that U.S. export controls on semiconductors are expected to cost them $1.5 billion in revenue this year. Nvidia is staring at even greater exposure. The company has already reported a $5.5 billion charge tied to inventory and purchase commitments for its H20 chip intended for the Chinese market. Analysts at Jefferies estimate this could lead to a $10 billion revenue hit for Nvidia.

Meanwhile, Super Micro Computer, a major supplier of servers using Nvidia chips, posted earnings at the top end of its guidance, but its forecast for the next quarter fell short. Some customers are reportedly delaying decisions, possibly because of the transition from Nvidia’s Hopper to Blackwell processors.

Nvidia Still Dominates the AI Chip Game

Despite these temporary hurdles, Nvidia remains the powerhouse of the AI chip world. Analysts estimate the company controls up to 98% of the data center GPU market, a virtually unmatched position. While rivals are entering the scene, the overall market itself is ballooning. That means more opportunities, not less, for Nvidia.

AI Market Outlook Is Sky-High

Forecasts for the AI sector continue to break ceilings:

  • Bloomberg Intelligence predicts the generative AI market could hit $1.3 trillion by 2032.
  • McKinsey & Company projects $2.6 trillion to $4.4 trillion in global economic impact over the next decade.
  • PricewaterhouseCoopers sets the bar even higher at $15.7 trillion by 2030.

Nvidia Stock: A Buying Opportunity?

Although Nvidia’s fundamentals are strong, the stock has been under pressure, down 16% since the start of 2025. Some analysts now see this dip as a buying opportunity. Currently, the stock trades at 26 times forward earnings which is considered quite reasonable for a market leader in AI. In Q4 of fiscal 2025 (ending January 26), Nvidia reported $39.3 billion in revenue, reflecting 78% growth year over year. Earnings per share (EPS) surged to $0.89, an 82% jump.

Still, since those earnings were reported in early February, the stock has dropped about 14%. On Wednesday morning, Nvidia shares were trading at $114.13, up 0.5%, after closing Tuesday at $113.80, down 0.3%. In contrast, Super Micro dropped 4%, AMD rose 2.6%, and Broadcom gained 0.9% in premarket action.

Conclusion:

Lisa Su’s powerful comments have helped reinforce confidence in the AI sector. And while Nvidia has some challenges to face including export restrictions and competitive shifts its dominant position and the massive AI market growth keep it firmly in the spotlight.