Artificial intelligence kingpin Nvidia Corp (NASDAQ:NVDA) stock is trading higher Thursday despite analysts claiming the gradual emergence of Advanced Micro Devices, Inc (NASDAQ:AMD) and Intel Corp (NASDAQ:INTC) as other significant beneficiaries of the AI frenzy.
Analyst Ming-Chi Kuo’s latest survey indicates that AMD’s AI chip shipments for 2024 (mainly the MI300A) will be about 10% of Nvidia (CoWoS-based).
In 2025, CSPs will likely be the main customers for AMD’s AI chips.
If the cooperation between Microsoft Corp (NASDAQ: MSFT) and AMD holds good, and AMD wins orders from Meta Platforms Inc (NASDAQ: META) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, AMD’s AI chip shipments will significantly reach 30% or more of Nvidia’s (CoWoS-based) in 2025.
BofA analyst Alkesh Shah also resonated with similar sentiments, citing the potential for AMD and Intel as Nvidia’s significant hyperscalers and cloud-service provider clients like Amazon.com Inc (NASDAQ: AMZN) Microsoft Corp (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and need twice the power of traditional CPUs.
Over the last decade, Nvidia’s $30 billion investment in AI initiatives helped it control over 75% of the AI GPU market.
Now, Shah expects Nvidia’s AI strategy to drive new revenue streams that may ultimately lead to business transformation. He expects Nvidia to maintain a 65%+ share over the longer term with Intel and AMD chip demand primarily driven by the AI CPU market.
Price Action: NVDA shares traded higher by 0.36% at $469.73 on the last check Thursday.
