AMD: AI Market Explodes

AMD: AI Market Explodes

12 June 2025

AMD's CEO, Lisa Su, forecasts significant growth in the AI processor market, estimating it will exceed $500 billion by 2028. This projection underscores AMD's ambition to challenge Nvidia's current dominance in the AI chip sector. Su's statement reflects the company's strategic focus on data centre and AI applications, with AMD investing heavily in new AI accelerators, networking solutions, and acquisitions to strengthen its position. AMD is banking on its next-generation MI350-series chip, expected in late 2025, to deliver a substantial performance leap in AI processing.

Despite AMD's optimism and efforts to capture a larger market share, Nvidia currently holds a considerable lead, driven by its early software investments and established ecosystem. AMD anticipates $5 billion in AI chip sales for 2024, representing approximately 20% of its projected revenue. The company is focusing on streamlining resources and delivering competitive technology to close the gap with Nvidia and secure inventory for major clients. AMD's success in the AI chip market hinges on its ability to gain ground in an increasingly Nvidia-dominated landscape.

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Published on 12 June 2025
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