AMD Gains Ground in AI Chip Market, Challenging NVIDIA's Dominance
2 Sources
2 Sources
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Oracle Exec: AMD Gaining Favor in Nvidia-Dominated Market for AI Chips
Despite Nvidia's booming growth in selling data center chips for artificial intelligence, some customers developing AI are turning to chips from smaller rival Advanced Micro Devices, said Karan Batta, a senior executive in Oracle's cloud business. Oracle rents out chips from both companies. "What we're finding now is customers are not necessarily tied to any one particular vendor for inferencing," Batta said. Inference computing refers to AI that has already been developed and is powering applications. "There's a lot of effort being put into AMD, and [the company is] doing a good job" at improving its chips' performance, he said.
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AMD Gains Ground in AI Chip Market, Oracle Exec Confirms Growing Demand: Report - Advanced Micro Devices (NASDAQ:AMD)
Analyst projects $5 billion growth in AMD's data center GPU revenue. Advanced Micro Devices, Inc AMD client Oracle Corp ORCL acknowledged the chip designer gaining traction in the data center chip market for artificial intelligence despite Nvidia Corp's moat. Oracle cloud business executive Karan Batta told the Information regarding customers' openness to multiple vendors for inference computing implying opportunities for AMD and rivals. Recent reports indicated AMD is currently ditching the premium gaming GPU market for the mainstream and mid-range GPUs. The update followed after AMD hired Nvidia's Keith Strier to helm AMD's AI vision. BofA Securities analyst Justin Post hailed the recent Oracle and Amazon.Com Inc AMZN partnership. This partnership offers cloud providers a sizable opportunity to unlock demand for infrastructure and applications, which in turn implies demand for Nvidia and AMD AI chips. Mai Capital Management portfolio manager Chris Grisanti, in a CNBC interview, cold-shouldered the recent semiconductor and AI chip stock selloff, citing sustained AI ambitions of cash-rich Big Tech giants. JPMorgan analyst Harlan Sur projects AMD's revenue from data center GPUs to grow by $5 billion in the current fiscal year. AMD stock gained 35% in the last 12 months. Investors can gain exposure to AMD through iShares Core S&P 500 ETF IVV and Vanguard Total Stock Market ETF VTI. Price Actions: AMD stock is up 2.32% at $156.15 at the last check Wednesday. Photo by jamesonwu1972 via Shutterstock Market News and Data brought to you by Benzinga APIs
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Oracle executive confirms growing demand for AMD's AI chips, signaling a shift in the market dominated by NVIDIA. This development could reshape the competitive landscape in the AI hardware industry.
AMD's Rising Prominence in AI Chip Market
In a significant development for the artificial intelligence (AI) hardware industry, Advanced Micro Devices (AMD) is reportedly making substantial inroads into the AI chip market, traditionally dominated by NVIDIA. This information comes from a high-ranking Oracle executive, suggesting a potential shift in the competitive landscape
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.Oracle's Endorsement
The endorsement from Oracle, a major player in the tech industry, lends credibility to AMD's growing influence. According to the Oracle executive, there is an increasing demand for AMD's AI chips, indicating that the company is successfully challenging NVIDIA's stronghold in this crucial market segment
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.Market Implications
This development could have far-reaching consequences for the AI industry. NVIDIA has long been the go-to choice for AI acceleration hardware, but AMD's progress suggests that the market is evolving. The increased competition could lead to more innovation, potentially lower prices, and a wider range of options for companies investing in AI infrastructure
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.AMD's Strategic Moves
AMD's gain in market share can be attributed to its strategic focus on developing high-performance AI chips. The company has been investing heavily in research and development to create processors capable of handling the complex computations required for AI and machine learning tasks
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.Impact on NVIDIA
While NVIDIA remains a dominant force in the AI chip market, AMD's progress represents a significant challenge. This competition could potentially erode NVIDIA's market share and force the company to innovate further to maintain its leading position
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Industry Response
The tech industry is closely watching these developments, as the AI chip market is crucial for the advancement of artificial intelligence technologies. Companies like Oracle, which rely on powerful hardware for their cloud and AI services, are likely to benefit from increased competition and innovation in this space
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.Future Outlook
As AMD continues to gain favor among major tech companies, it could lead to a more diverse and competitive AI chip market. This shift may accelerate the development of AI technologies and potentially make advanced AI capabilities more accessible to a broader range of businesses and organizations
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