AMD’s Competitive Landscape in AI Accelerators
Advanced Micro Devices (NASDAQ: AMD) is reportedly narrowing its competitive gap with Nvidia (NASDAQ: NVDA) in the AI accelerator market, currently dominated by Nvidia with an estimated 80% market share as of 2023. AMD’s revenue growth for the first nine months of 2025 was 36%, while its data center segment, which represents 46% of its overall revenue, grew by 29%. In contrast, Nvidia’s data center segment saw a 65% revenue increase, constituting 89% of its total revenue.
AMD is spurred by its upcoming MI450 accelerator, which it claims will outperform Nvidia’s Vera Rubin model. Strategic partnerships with firms like OpenAI and Meta Platforms and support for major cloud solutions from Microsoft and Oracle are also part of its strategy to gain market traction. Despite these efforts, analysts suggest that while AMD may reduce the competitive gap, Nvidia is expected to maintain its leadership position in the foreseeable future.
