AI Chip Wars: Is AMD Ready to Challenge Nvidia's Market Dominance?
Nvidia(NASDAQ:NVDA) first-quarter earnings report completely changed Wall Street’s perception of the ongoing generative AI revolution. The chipmaker offered a monstrous guidance that topped analyst expectations by over 50%.
Nvidia expects to generate $11 billion in Q2 revenue, crushing the Street expectations for $7.13 billion. For the first quarter, the company reported sales of $7.19 billion, also higher than the expected $6.52 billion. Bernstein analysts wrote in a note,
«In the 15+ years we have been doing this job, we have never seen a guide like the one NVDA just put up with FQ2 outlook that was by all accounts cosmological, and which annihilated expectations,»
Speaking on the earnings call, the company’s CFO, Colette Kress, said that demand for high-end chips «has extended our data center visibility out a few quarters, and we have procured substantially higher supply for the second half of the year.»
The Tokenist likened the situation to Nvidia’s “iPhone moment”. Given the unprecedented demand for high-end GPUs, Nvidia stock surged past the $1 trillion market cap threshold, joining an exclusive club of companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), and Saudi Aramco (TADAWUL:2222).
Several weeks later and the stock market is trading higher, with the AI-exposed stocks leading the rally. Nvidia is an indisputable market leader at the moment, but several players are looking to close the gap.
The first in line to challenge Nvidia’s dominance is Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC), although the latter to a certain extent only given the decade-long underperformance. According to early estimates, Nvidia has an 80%+ share in this lucrative
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