Advanced Micro Devices (AMD) shares are falling after the chipmaker reported third-quarter results and its fourth-quarter outlook failed to impress investors. The AMD selloff triggered a decline in Nvidia shares as weaker-than-expected guidance fueled some concerns about demand for artificial intelligence (AI) chips. Paul Meeks, CIO of Harvest Portfolio Management and Wall Street Beats partner, explains the results and what they mean for the company and the AI ​​space to Morning Brief hosts Seana Smith and Brad Smith.

Meeks says: “I have a third of my portfolio with Nvidia. It was a rock star. I don't think what AMD said yesterday will put Nvidia in danger, and with the big step Nvidia has already seen (and) the fact that it's only 1% today compared to AMD's sins, stand by I actually think it's a pretty good sign.”

He adds: “The problem (at AMD) is not just playing an AI accelerator chip.” There is also a CPU business, and that business is pretty shitty at the moment. And here's how I see it: Even if AMD will be a viable number two for Nvidia in the AI ​​chip market and the stock trades at a discount compared to Nvidia, I'll just stick with the pure strategy. I'm just buying more Nvidia based on this news and continuing to avoid AMD, which was a good trade for me.”

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This post was written by Naomi Buchanan.