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AMD’s piece of the AI pie will need to prove sticky
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Advanced Micro Devices (AMD) is facing the challenge of competing with Nvidia in the AI chip market. Nvidia's AI business has rapidly grown, with a fourfold increase in revenue expected by 2025. AMD recently unveiled new AI chips and is targeting sales of $2 billion next year. The company's track record of exceeding sales forecasts gives some confidence in achieving this target. However, AMD's shares fell after the announcement, and the absence of major AI chip buyers like Amazon and Google raises questions about the company's ability to carve out a strong share in the face of well-established competition.
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