AMD and Intel Experience Significant Revenue Growth Driven by AI Demand
Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC) have reported remarkable stock performance over the past year, with AMD’s shares rising 285% and Intel’s gaining 322%. Both companies attribute this growth to the increased demand for their chips in artificial intelligence (AI) data centers. Analysts highlight that the global AI chip market could generate $2 trillion in annual revenue by 2030, growing at a compound annual growth rate (CAGR) of 40%.
In Q2, AMD’s data center revenue surged 107% year over year to $6.7 billion, while Intel’s revenue increased by 59% to $6.3 billion. Notably, Intel holds a 65.5% market share in server CPUs, but AMD’s share is rapidly expanding, with a year-over-year increase of 7.2 percentage points. As the demand for CPUs in AI data centers shifts from GPUs, the total addressable market for server CPUs is expected to reach $220 billion by 2030.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
