AMD Faces Nvidia Software Hurdle, While Intel Could Reclaim PC Market Share, Morningstar Says

What happened

Morningstar analyst Brian Colello raised AMD’s fair value estimate to $570 per share from $530 but kept its rating at fairly valued. Nvidia and Intel remained rated undervalued, with price targets of $570 and $85. Morningstar’s estimates indicate potential upside of 18% for AMD, 50% for Nvidia, and 40% for Intel.

Confirmed

Global impact / market context

The higher estimate recognizes more value in AMD, but Morningstar’s unchanged rating suggests it sees the shares as fairly priced. Its view that AMD needs stronger software to compete with Nvidia identifies a business hurdle: weaker software could limit AMD’s ability to win AI chip sales and grow revenue.

Analyst inference

Morningstar’s comparison favors Nvidia and Intel over AMD on estimated upside, even after AMD’s valuation increase. The article also reports weaker early trading across the named chip shares and the broader technology sector, but gives no evidence that Morningstar’s ratings caused those declines.

Analyst inference

What to watch

1. Watch for evidence that AMD improves its AI software tools; Morningstar says stronger software is needed to help the company compete with Nvidia and capture more chip sales. Analyst inference
2. Look for changes to Morningstar’s AMD estimate or rating. A further increase could signal a higher valuation view, while a rating change would revise its fairly valued assessment. Analyst inference
3. For Intel, the supplied article says Colello discussed older chips, but the text ends before completing that point; it provides no confirmed explanation of how Intel could regain PC share. Confirmed

Evidence

• stocktwits.com