Analyst: Nvidia Dominated AI Chip Market for Two Years, but AMD Is Now Catching Up with Its CPUs

Odaily Odaily reports that AMD's stock price surged to a record high on Wednesday. The strong outlook boosted investor confidence in the sustained demand for AI infrastructure, driving an overall rally in global semiconductor stocks. Analysts and investors view AMD as the leading challenger to Nvidia's dominance in the AI chip market, and the company is also benefiting from its focus on the CPU business. CPUs have gained significant importance as businesses shift towards agentic AI—systems capable of performing autonomous functions—which broadens the demand horizon beyond GPUs used for training large models. "Nvidia had a monopoly on the AI chip market for two years, but other companies are now gradually catching up. At the same time, the market is expanding, leaving room for future growth," said Michael O'Rourke, Chief Market Strategist at Jones Trading.

"AMD's story is no longer just about competing with Nvidia on GPUs... it's increasingly shifting towards a broader computing opportunity, as both CPUs and GPUs will play their respective roles as demand for AI workloads grows," said Matt Britzman, Senior Equity Analyst at Hargreaves Lansdown. (Jin Shi)