Advanced Micro Devices, Inc (NASDAQ:AMD) stock continued its upward trajectory Tuesday after the Friday's selloff, along with Nvidia Corp (NASDAQ:NVDA) stock.

The key artificial intelligence beneficiaries lost close to 6% – 10% in stock value last Friday as the Street grew wary of the U.S. Federal Reserve's rate cuts and Iran and Israel strike.

Meanwhile, reports indicated that Chinese companies are succeeding in procuring advanced Nvidia chips from third-party vendors.

Previously, Chinese tech juggernaut Alibaba Group Holding Limited (NYSE:BABA) voiced how the U.S. embargo harmed China's AI ambitions.

Prior reports had also indicated how the U.S. embargo led to a captive underground market for AI chips in China.

Analysts expect Nvidia to dominate the ~$90 billion calendar year 2024 accelerator market (rising to $200 billion by calendar year 2027), primarily backed by its Blackwell product.

Analysts have identified several growth catalysts for AMD's recent surge, beginning with the introduction of new products. AMD unveiled the Ryzen PRO 8040 and 8000 Series processors, AI-enabled and built using advanced 4-nanometer technology, targeting business laptops, mobile workstations, and desktops.

The anticipated expansion of the AI PC market will likely benefit AMD significantly. Analysts have also highlighted AMD's competitive positioning against Nvidia in the merchant accelerators market, bolstered by its Mi300 series products and an evolving chip, hardware, and software ecosystem.

Further financial upside is likely from the acquisition of Xilinx, which will likely offer substantial revenue synergies exceeding $10 billion.

Nvidia stock gained over 203% in the last 12 months , and AMD gained 74%. Investors can gain exposure to Nvidia via VanEck Semiconductor ETF (NASDAQ:SMH) and Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ).

Price Actions: NVDA shares traded higher by 3.68% at $824.48 at the last check Tuesday. AMD shares traded higher by 3.01% at $153.10.

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