With a Q3 earnings report that underwhelmed in some facets, Advanced Micro Devices (AMD) fell as much as 13% in the last two days, although it hasn’t stopped experts from projecting the company to eventually compete with Nvidia (NVDA). Indeed, the company has increased more than 175% in the last year and has been one of the more dominant stocks.

During its most recent earnings call, AMD forecasted between $7.2 billion and $7.8 billion in Q4 revenue. However, analysts’ consensus was situated at $7.55 billion, which would be below the forecast midpoint. That doesn’t change the high hopes that many have for the stock, due to one very important facet.

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AMD The Next NVDA? Why Some Analysts Believe So

Throughout the last year, Nvidia has become one of Wall Street’s most dominant stocks. The chipmaker has been propelled by the ongoing AI boom. Indeed, its value in that regard has it eyeing a strong chance of eventually becoming the first company to reach a $4 trillion market cap.

The competition appears to be heating up, however. Although AMD stocks fell 13% over the last two trading days, experts are still projecting it to compete with NVDA. The company reported earnings and revenue above expectations in Q3. Moreover, those figures were a byproduct of increased AI demand.

Also Read: AMD Stock Expected To Surge After Q3 Earnings Results

Additionally, its data center business, which has been tremendously important, has also thrived. It had reported $3.5 billion in sales, a jump from the $1.59 billion reported a year ago. Furthermore, its GPU sales are projected to surpass $5 billion in 2024, compared to $4.5 billion in July.

The stock may not be the most consistent, but it has certainly performed well in the last four years. Nvidia had a head start in the AI-GPU sector, but AMD is looking to compete nonetheless. With a recently unveiled Instinct MI325X chip, analysts expect it to take on NVDA’s Blackwell chips head-on.