Part 13/16:
In contrast, AMD offers potential upside as it rides the tailwinds of large enterprise deals and evolving inference hardware needs. However, its focus is narrower, and its risk profile differs significantly from Nvidia's.
A typical allocation approach suggested by industry veterans might be approximately 90% to Nvidia and 10% to AMD, considering Nvidia's leadership in overall AI compute markets and AMD's strategic footholds.
Key Takeaways for Investors and Industry Enthusiasts
AI is an exponential growth driver: Its demand will continue to outpace silicon scaling, driving chip design innovation.
Nvidia leads in creating ecosystems: Its proprietary CUDA platform and market-building strategies foster substantial switching costs and moat creation.