Key Points
Advanced Micro Devices (NASDAQ: AMD) is in the process of finalizing a deal with Anthropic to provide 2 gigawatts of AI computing capacity and may invest up to $5 billion in equity with the company. This comes amidst AMD’s growing partnerships, including a notable commitment from Microsoft’s Azure to utilize AMD’s Helios rack-scale platform, further enhancing its competitive stance against Nvidia, which still holds over 80% of the AI accelerator market.
Despite AMD’s advancements, Nvidia reported an impressive $75 billion in data center revenue last quarter, while AMD’s revenue accounts for only 5% to 7%. However, AMD’s stock has surged nearly 158% year-to-date as of July 23, contrasting Nvidia’s modest 12% increase during the same period.
The AI accelerator market is projected to exceed $200 billion by 2026, indicating substantial growth potential for both companies. Analysts suggest that AMD does not need to surpass Nvidia to achieve significant revenue increases, given the lucrative market landscape.
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