From Nasdaq:

In 2024, semiconductor giants AMD and Nvidia are set to benefit from the exponential growth of AI applications, but with different growth paths. Nvidia projects 126% revenue growth in 2024 to $58.1 billion, while AMD is expected to see a more modest 10.3% increase to $25 billion, rebounding to 21.9% growth in 2024 reaching $30.5 billion. Analysts are bullish on Nvidia’s dominance in AI training and server CPUs, while AMD aims to secure a profitable position in AI inference and CPU share gains against Intel.

Nvidia’s bullish outlook stems from its leading position in AI hardware and software, expected to capture a significant market share. Meanwhile, bears worry about potential disruptions from in-house AI chips by cloud giants and the rise of open-source alternatives to Nvidia’s CUDA platform. On the other hand, AMD bulls see promise in server CPU share gains and AI inference opportunities, with bears cautious about AMD’s lag in AI training and full software stack compared to Nvidia.

Risks and uncertainties loom for both companies in the AI market, with potential slower enterprise adoption or shifts in workloads impacting growth estimates. Geopolitical tensions around AI and export restrictions also pose challenges. Nvidia faces risks in its gaming business due to crypto demand and chip shortages, while AMD is exposed to the cyclical PC market. While both companies are expected to see margin expansion, Nvidia’s margin is likely to be substantially higher due to software pricing power.

Overall, while both AMD and Nvidia are poised to benefit from the AI trend, Nvidia holds an edge with market leadership, software advantages, and growth trajectory. AMD can still secure a profitable position in AI inference and CPU share gains but may struggle to catch up with Nvidia in AI training. Yet, both companies are pivotal players in the transformative AI technology landscape, offering ample growth opportunities in the foreseeable future.



Read more at Nasdaq: AMD vs Nvidia: A Comparative Analysis for 2024