AMD Chips its Way Into Booming AI Market, Poised to Challenge Nvidia
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AMD is an emerging challenger to Nvidia in AI chips for data centers. Its new MI300 series chips aim to take market share in a fast-growing space.
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AMD also has a 90% market share in AI chips for personal computers like laptops. Its Ryzen AI chips power advanced features like text, image and video generation.
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The AI opportunity could fuel significant growth for AMD beyond Wall Street's forecasts. Nvidia expects $1 trillion in data center upgrades over 4 years to meet AI demand.
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If AMD grows revenue 14% yearly, it could reach $84 billion in annual sales by 2034, justifying a $1 trillion valuation at its current price/sales ratio.
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AMD stock has tripled the S&P 500's returns over the past 10 years despite some lumpiness. AI could accelerate its growth further.