Shares of Advanced Micro Devices (NASDAQ: AMD) are rising today, up 7.4% as of 1:45 p.m. ET, according to data from S&P Global Market Intelligence. Meanwhile, Nvidia's stock was up 2%.
Nvidia may be AMD's biggest competitor in the artificial intelligence (AI) race, but positive news for the company has a tendency to lift other top AI players. Nvidia's share price is moving higher today thanks to bullish coverage from an analyst and partnership news, and the gains are having spillover effects for AMD.
No company has a greater impact on AI stocks' valuations than Nvidia. Nvidia's graphics processing units (GPUs) have become the foundational hardware powering the artificial intelligence revolution, and favorable developments for the AI leader are often interpreted as a positive sign for other companies with exposure to the tech trend. So even though the company is a more powerful rival in the GPU market, favorable developments for Nvidia often have the effect of sending AMD stock higher.
Source Fool.com