Artificial intelligence (AI) stocks are all the rage with investors these days -- and how can you blame them for their enthusiasm after Nvidia (NASDAQ: NVDA), the poster child for the AI revolution, more than tripled in price in 2023? Now that the calendar has flipped to 2024, investors are looking for "the next Nvidia," and a lot of them appear to be betting that it will be Advanced Micro Devices (NASDAQ: AMD), which just announced its MI300X line of accelerator chips.

Not so fast, said Northland Capital on Monday, when it downgraded AMD to "market perform." The stock promptly fell, and was trading down 3.6% as of 2:25 p.m. ET.

With Nvidia stock up more than 200% over the past 52 weeks -- including more than 20% in 2024 alone -- but AMD up "only" 127%, most investors still seem to agree that the next Nvidia is actually going to be Nvidia. Still, hope springs eternal, and AMD stock has definitely caught a tailwind from its rival's success.

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Source Fool.com