Nvidia and AMD Battle for AI Chip Dominance Amid Booming Demand
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Semiconductor industry sees rising competition between Nvidia and AMD amid surging AI chip demand. Nvidia dominates with 80% market share but AMD plans new powerful GPUs.
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Nvidia stock surged 240% in 2023 on back of 205% revenue growth to $18.1 billion. AI chip sales spiked 280%.
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AMD stock up 112% in 2023. More modest revenue growth to $5.8 billion. Aims to reduce customer dependence on Nvidia.
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Nvidia has advantage in market cap ($1.2 trillion vs $146 billion) and financial strength. But AMD chips seen as more cost-effective.
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Both companies poised for further growth in 2024 driven by AI, but Nvidia expected to maintain leadership. AMD could gain more market share if executes strategy.