The AI hardware race continues to accelerate, and AMD has entered with force. At its recent “Advancing AI” event, the U.S. chipmaker introduced new products and services across semiconductors, software, and AI computing.
AMD revealed the Instinct MI350 series of GPUs, built for AI workloads. The company also teased the upcoming MI400 “Helios” rack-scale solution, expected in 2025. These developments could help AMD compete with Nvidia, which still dominates the AI chip market.
The company also announced updates to its ROCm software ecosystem. Improved tools could make AMD chips more attractive for developers and cloud providers. Sam Altman, CEO of OpenAI, appeared at the event, signaling major partnerships. AMD’s collaboration with large tech firms may give it a boost in the AI hardware race.
Despite this, some analysts still believe Nvidia holds a lead in both hardware and software. However, AMD’s progress shows it can secure a share of the market over time.
On June 12, AMD shares dipped slightly. Analysts say this happened because most of the announcements were already expected. By June 16, shares rose over 9%, possibly due to reports of AMD winning GPU deals with Amazon. Amazon Web Services also sponsored the event.
AMD lifted its forecast for the global AI accelerator market. It now expects revenue to surpass $500 billion by 2028. The company believes AI inference will lead the surge, predicting an 80% compound annual growth rate in this segment.
Overall AI chip revenue could grow at 60% CAGR, rising far above the $45 billion earned in 2023. If AMD expands its partnerships with major cloud providers, its share in the AI hardware race could grow rapidly.
Still, high risks remain. Nvidia could maintain its lead, limiting AMD to niche roles in the market. Yet the AI hardware race is far from over, and AMD is positioning itself for a bigger role.
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