AMD Chips Away at Nvidia's Dominance in Lucrative AI Chip Market
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AMD is battling Nvidia for market share in the red-hot artificial intelligence (AI) chips market, with Nvidia currently dominating with over 90% share.
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While AMD is unlikely to overtake Nvidia as the leader, customers want choice and AMD provides a viable, high-performance alternative.
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The total addressable market for AI chips could reach $400 billion by 2027, providing ample room for multiple vendors to see strong growth.
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AMD has a history of being a strong second-place player, gaining 20-30% market share in areas like PCs and servers against giants like Intel.
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Though trailing Nvidia, AMD stock has still enriched shareholders in recent years as the company has executed well in challenging larger rivals.