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Nvidia has been the most obvious winner from booming demand for AI chips.
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Its top rival, Advanced Micro Devices, is slowly narrowing the gap thanks to megadeals with hyperscalers.
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AMD has a new line of chips slated to release soon, and it’s attracted the likes of Oracle and OpenAI away from Nvidia.
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10 stocks we like better than Advanced Micro Devices ›
When investors think about artificial intelligence (AI) hardware stocks, Nvidia understandably dominates the conversation. Yet beneath the surface, another semiconductor powerhouse is making impressive strides.
Advanced Micro Devices (NASDAQ: AMD) has transformed from a longtime challenger in graphics processing units (GPUs) and central processing units (CPUs) into a credible leader in AI accelerators — the high-performance chips that enable the training and deployment of large language models (LLMs) and generative AI applications.
With a growing line-up of cutting-edge processors and strategic partnerships with major cloud providers, AMD is positioning itself as a top contender in the next wave of AI infrastructure growth.
Nvidia remains the undisputed leader in the AI hardware market, but AMD is rapidly narrowing the gap. The company’s Instinct MI300 chip architecture has already proven capable of competing at the highest performance tiers, and the upcoming MI400 accelerators are expected to deliver meaningful improvements in memory capacity, energy efficiency, and throughput.
These gains aren’t just theoretical. Major hyperscalers like Microsoft and Meta Platforms are already integrating AMD’s chips into next-generation data center buildouts as an alternative to Nvidia’s GPUs.
By embracing open-source standards like ROCm, AMD is creating a more flexible ecosystem that enables developers to move and optimize models seamlessly across platforms. The company’s message to customers is clear: Achieve cutting-edge AI performance without being locked into a single vendor’s proprietary ecosystem or constrained by Nvidia’s supply chain and pricing.
Perhaps the clearest validation of AMD’s progress in AI hardware comes from two of the most influential names in the industry: OpenAI and Oracle.
Earlier this month, OpenAI announced a 6-gigawatt data center partnership to power its next generation of models using new architectures built on AMD accelerators. Just a week later, Oracle revealed that its cloud infrastructure division would deploy 50,000 Instinct MI450 chips in the second half of next year.
