Has AMD Become a Significant Threat to NVIDIA?
Over the last few years, graphics processing pioneer NVIDIA Corporation (NASDAQ: NVDA) has been riding high on its growing success in the area of artificial intelligence (AI). Scientists found that the parallel processing capabilities that make graphics processing units (GPUs) superb at rendering images in video games also worked well for data processing in AI systems. NVIDIA moved quickly into the space, establishing itself in the majority of data centers running AI applications. Growth from AI has exceeded 174% on average in each of the last five quarters and now accounts for nearly 19% of NVIDIA's revenue. Its stock has surged over 800% in the last three years and has shown no signs of slowing.
Competition may be heating up, however, as Advanced Micro Devices, Inc. (NASDAQ: AMD) no longer seems content to cede the space to NVIDIA. Several recent wins of big-name customers show that AMD may represent a bigger threat to NVIDIA than previously believed, and the company may be becoming a serious competitor in the nascent AI market.
Can AMD's new line of AI-enabled GPUs unseat NVIDIA? Image source: AMD.
Source: Fool.com
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