With a 90% market share, Nvidia (NASDAQ: NVDA) reigns as the undisputed King of the Artificial Intelligence (AI) chip market. Yet, in an ironic twist, the company's very success has created favorable conditions for its rivals to take down the AI titan a notch or two from atop its perch. Advanced Micro Devices (NASDAQ: AMD) realizes the opportunity a supply-constrained Nvidia has presented and intends to fully exploit these fortuitous circumstances to its advantage.

Nvidia's unprecedented revenue growth, its rising stock price and consequential market capitalization have all demonstrated that the AI infrastructure market is sustainable and unbounded. Hyper-demand for Nvidia's chips has dispelled any lingering doubts that AI mania is merely another dot.com bubble waiting to burst.

Graphics Processing Unit (GPU)chips are the lifeblood of generative AI systems. Semiconductor companies, such as AMD, provide the essential chip architecture capabilities necessary to create and sustain such systems. Tech companies that build or design these indispensable components are the only businesses at present able to convert the AI hype into an appreciable revenue reality.

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Source Fool.com