What AMD needs to do to break Nvidia’s stranglehold on AI

Nvidia has dominated the semiconductor industry for years, making it nearly synonymous with artificial intelligence (AI) hardware. From self-driving cars to cutting-edge research, Nvidia’s high-performance graphics processing units (GPUs) are the gold standard in AI. The company’s grip on the market has long seemed unbreakable–until recently.

In October, Advanced Micro Devices (AMD) entered the market by unveiling its own AI chip aimed squarely at challenging Nvidia’s GPU monopoly. Since then, AMD has outlined an ambitious roadmap to expand its AI hardware portfolio over the next two years, positioning itself as a worthy competitor to Nvidia’s dominance. These are promising signs of an evolving landscape–but what can AMD do to tilt the scales in their favor?

The state of play

The semiconductor sector is starting to pay attention to the shifting market dynamics - as seen by AMD’s highly anticipated third-quarter results. A surge in ...