AMD Is Targeting Nvidia’s AI Lead — It All Hinges on Doing This 1 Thing

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thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more hereAdvanced Micro Devices (NASDAQ:AMD) has rapidly caught up in the artificial intelligence space after lagging behind for years. Once focused mainly on CPUs and consumer GPUs, the company shifted gears to challenge Nvidia (NASDAQ:NVDA) in data center AI chips.AMD's MI300 series accelerators gained traction with major hyperscalers, driving record revenue growth in its data center segment. This positioned AMD as a viable, fast-growing alternative to Nvidia's dominance. Now, AMD is making a strategic pivot to reshape the competitive landscape in its favor. It aims to offer more comprehensive solutions that could attract broader adoption. But success depends on executing one critical element effectively.AMD's latest strategy centers on creating an end-to-end AI infrastructure platform. This includes silicon such as chips and processors, high-speed interconnects for linking systems, software development tools, and even full rack-scale deployments that customers can easily scale. The goal is to provide hyperscalers and enterprises with turnkey solutions for AI workloads.Unlike Nvidia's tightly integrated vertical approach, AMD emphasizes an open ecosystem. This means collaborating with partners to ensure compatibility and flexibility, allowing customers to mix components without being locked into one vendor.At its recent analyst day, AMD outlined ambitious targets for this pivot. The company projects its data center business to grow at a greater than 60% compound annual rate in annual revenue from the segment by 2030. That would expand the segment from about $16 billion today to nearly $100 billion over the next five years. To hit these numbers, AMD needs strong ramps for upcoming products like the MI450 GPU and the Helios rack-scale system. These offerings are designed for massive AI training and inference tasks.CEO Lisa Su highlighted momentum with multiple large-scale opportunities, including hyperscalers and sovereign AI projects. If these targets are achieved, AMD's gross margins could reach 57%, and earnings could rise above $20 per share by 2030.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,724.03 -10.08 (-0.15%)Dow 3047,050.58 -96.90 (-0.21%)Nasdaq22,879.09 -21.49 (-0.09%)Russell 20002,384.94 -3.29 (-0.14%)VIX20.76 +0.93 (+4.69%)Gold4,076.50 -17.70 (-0.43%)PortfolioSign in to access your portfolioSign inTop gainersPACS PACS Group, Inc. 15.83 +5.25 (+49.62%)DGNX Diginex Limited 12.99 +2.46 (+23.35%)JAZZ Jazz Pharmaceuticals plc 165.86 +24.79 (+17.61%)SQM Sociedad Química y Minera de Chile S.A. 60.65 +6.10 (+11.19%)QUBT Quantum Computing Inc. 11.64 +1.04 (+9.81%)Top losersMENS Jyong Biotech Ltd. 32.71 -5.48 (-14.35%)ONDS Ondas Holdings Inc. 6.30 -0.88 (-12.25%)FLY Firefly Aerospace Inc. 20.30 -2.65 (-11.55%)DAVE Dave Inc. 185.84 -19.46 (-9.48%)LB LandBridge Company LLC 67.51 -7.03 (-9.43%)Most activeNVDA NVIDIA Corporation 187.05 -3.12 (-1.64%)ONDS Ondas Holdings Inc. 6.30 -0.88 (-12.25%)LNW Light & Wonder, Inc. 86.22 +86.22 (0.00%)QUBT Quantum Computing Inc. 11.64 +1.04 (+9.81%)PLUG Plug Power Inc. 2.1191 -0.1259 (-5.61%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersNFLX Netflix, Inc. 110.83 -0.38 (-0.34%)GOOGL Alphabet Inc. 289.64 +13.23 (+4.79%)GOOG Alphabet Inc. 290.18 +13.20 (+4.77%)GNS Genius Group Limited 0.8957 +0.0328 (+3.80%)DELL Dell Technologies Inc. 124.10 -9.66 (-7.23%)Top economic events