From Nasdaq:

Nvidia dominates the AI GPU industry with a market cap of around $1.98 trillion. AMD, the No. 2 player, has a market cap of $311 billion. Despite AMD’s growth potential in the AI data center business, it will need to triple in value to reach a trillion-dollar status by 2030.

AMD reported $22.7 billion in revenue for 2023, with AI data center business up 7%. With an addressable market of $400 billion by 2027, AMD’s potential for growth lies in the manufacturing of MI300X chips.

AMD faces challenges in catching up with Nvidia’s innovation pace. While valuation projections indicate potential growth, competition from other AI chip developers like Microsoft and Amazon could affect long-term growth prospects for both Nvidia and AMD.

Investors may see AMD as a hedge in the chip industry, but closing the gap with Nvidia’s valuation seems unlikely. While AMD remains a significant player in AI GPUs, becoming a trillion-dollar company like Nvidia is a daunting prospect.



Read more at Nasdaq: Will AMD Be a $1 Trillion Company by 2030?