Nvidia and AMD Lead AI Chip Market Growth
Nvidia (NASDAQ: NVDA) continues to dominate the AI chip market, achieving record annual sales of $130 billion, with shares surging over 900% in the past three years. In Q3, Nvidia’s revenue increased by 62%, reaching $57 billion, driven by high demand for its advanced GPUs that are essential for AI model training.
In response, rival Advanced Micro Devices (NASDAQ: AMD) reported a 36% increase in revenue to $9.2 billion in the latest quarter, focusing on competitive pricing for its accelerators. However, AMD trades at a premium valuation of over 50x forward earnings compared to Nvidia’s 37x, raising concerns among investors. Despite differences, Nvidia predicts $3-$4 trillion in AI infrastructure spending over the next five years, indicating robust growth potential for both companies.
