Nvidia and AMD’s Breakthrough Products at CES 2025: Why These Stocks Are Set to Skyrocket

Semiconductor design leaders Nvidia and AMD showcased a series of innovative products at CES 2025, highlighting the latest AI and computing technology advancements.

Nvidia unveiled its next-generation GPU alongside Cosmos, a groundbreaking AI physics simulator designed for robot training. Meanwhile, AMD introduced its new Ryzen CPU lineup and announced an expanded partnership with Dell Technologies.

Kim Se Hwan, an analyst at KB Securities, observed that customers already have Nvidia’s upcoming Blackwell architecture, accelerating the expansion of its software ecosystem.

AMD’s MI300 and EPYC CPU offerings have fueled a resurgence in client CPU sales and robust growth in data center revenue.

Nvidia announced that its AI-powered GeForce RTX 50 series GPUs will hit the market in January. The company also revealed Cosmos, the world’s first physical AI simulator, which is a step to revolutionize robotics and autonomous driving development.

This simulator can process an astounding 20 million hours of video in just two weeks, utilizing CUDA technology for training. Cosmos is now available under an open license on GitHub.

Nvidia’s Blackwell AI lineup has entered full-scale production and is being adopted by major cloud service providers and PC manufacturers.

AMD’s latest Ryzen CPU series targets gamers and content creators with improved performance.

The company expands its partnership with Dell Technologies to supply CPUs for enterprise PCs, building on Dell’s existing use of AMD processors in consumer devices.

The new Ryzen 9900X3D and 9950X3D feature 16 cores and deliver approximately 8% faster performance than the Ryzen 7950X3D, thanks to the advanced Zen 5 architecture.

AMD also introduced the Ryzen Z2, a second-generation processor for handheld gaming PCs, and new AI-focused products, including the Ryzen AI Max and the Ryzen AI 300 and 200 series processors.

Kim suggests that Nvidia and AMD’s stocks are undervalued relative to their future earnings potential and recommends increasing investment in both companies.

The 12-month forward price-to-earnings ratios (PER) for Nvidia and AMD are 34.5 and 25.3 times, respectively, surpassing the market average 21.4.

However, Nvidia’s and AMD’s projected annual profit growth rates of 27.5% and 45.4%, far above the market average of 13.2%, give them PEG ratios of 1.3 and 0.6, suggesting both stocks are undervalued.

Nvidia’s 12-month forward return on equity (ROE) of 66.3% far outshines the S&P 500 average of 20.8% while maintaining an impressive operating margin of 54.1%.