AMD vs Nvidia: Is AMD Positioned to Close the AI GPU Gap by 2025?
Given the success of Nvidia as an investment, it makes sense to examine comparable businesses to determine if they have potential. In order to develop artificial intelligence (AI) models, AMD also offers a significant range of graphics processing units (GPUs). Even though AMD is clearly behind Nvidia, will it be able to overtake it in 2025?
AMD’s Data Center Revenue Surges 122%, Boosting Q3 2024 Performance
Compared to Nvidia, AMD is a significantly larger firm. AMD is also involved in CPUs (central processing units), which are utilized in PCs and data centers, but Nvidia is concentrated on the GPU sector and the different products that support it. Additionally, field programable gate arrays (FPGAs), which are employed in certain industrial applications, are produced by its embedded processor sector.
AMD hasn’t performed as well in recent years as a result of its diversification in comparison to Nvidia. AMD’s revenue has been relatively stable since 2023, whilst Nvidia’s revenue has increased dramatically. However, diversity, not its second-place GPUs, is more responsible for AMD’s static sales number. AMD’s data center, which houses its GPU division that is comparable to Nvidia, has seen a sharp surge in income in several quarters. The fiscal year 2024’s third quarter saw a 122% increase in revenue.
This is good news for AMD because client revenue, which includes AMD’s PC hardware, increased by 29%. In previous quarters, this segment has had difficulties. Its embedded and gaming divisions, meanwhile, saw declines of 25% and 69%, respectively, year over year. Nevertheless, AMD’s sales grew by 18% annually, the greatest rise since 2022, despite these mixed outcomes.
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