Growth Potential of AMD and Intel in the AI Chip Market

The surge in demand for processors used in artificial intelligence data centers has driven significant growth in the revenues and earnings of Advanced Micro Devices and Intel.

Significant Stock Surge

Over the past year, AMD shares recorded an increase of 285 percent, while Intel's earnings reached levels of 322 percent.

Growing Demand for Processors

Intel and AMD design and manufacture central processing units used in personal computers and data centers.

Due to their roles in managing inference and artificial intelligence tasks, the need for central processing units in artificial intelligence data centers has increased.

Market Size Expectations

According to information shared by AMD, the compound annual growth rate of the server central processing unit total addressable market could exceed 50 percent by the end of the decade.

It is projected that the size of this market could reach 220 billion dollars by the end of the decade.

Market Share Distribution

According to Mercury Research data, Intel holds a 65.5 percent share of the server central processing unit market.

AMD, which controls the remainder of the market, tends to increase its share, gaining 7.2 percentage points year-over-year in the second quarter.

Diversified Chip Products

AMD also maintains a presence in the graphics market with its Instinct data center graphics processing unit series, favored by customers such as OpenAI, Meta Platforms, and Anthropic.