Part 3/4:
Nvidia's Blackwell architecture, set to launch in the coming weeks, is expected to be four times better at AI training and 30 times better at AI inference than Hopper. This massive leap in performance gives Nvidia significant pricing power, with gross margins of 76% compared to AMD's 50%.
Risks and Diversification
Another risk for AMD is the company's diversification across multiple business units, including client PCs, gaming, and embedded chips, which account for nearly 50% of its revenue. This breadth of operations may hinder AMD's ability to focus solely on the AI market, where Nvidia's laser-like focus has proven advantageous.
Additionally, AMD's reliance on the x86 CPU ecosystem, while still dominant, faces the potential challenge of the growing adoption of ARM-based architectures by competitors like Nvidia, Google, and Amazon.
Implications for AMD's Ranking
[...]