Part 2/4:
The data center revenue disparity between AMD and Nvidia is further exacerbated by the fact that only 25-35% of AMD's total revenue is directly tied to AI, compared to a staggering 88% for Nvidia. This means that for every dollar invested in Nvidia, 88 cents are exposed to the AI market, while for AMD, it's only 25-35 cents.
As the global artificial intelligence market is expected to grow by nearly 11 times over the next 9 years, and the data center accelerator market is projected to more than 5x by 2032, this AI exposure gap becomes increasingly significant.
The Challenge of Competing with Nvidia
AMD has made strides in developing its own AI accelerators, such as the Mi 300X and the recently announced Mi 325X, which claim to outperform Nvidia's offerings by 20-40% in inference and match their performance in training. However, the challenge lies in the pace of Nvidia's innovation.
[...]