AMD Hires AI Veteran from Nvidia to Boost Market Share
Advanced Micro Devices Inc. (AMD) is making a strategic move in the artificial intelligence (AI) landscape by hiring Keith Strier, a prominent figure in AI from its rival Nvidia Corp (NVDA), as its Senior Vice President of Global AI Markets. This strategic appointment comes at a time when the competition for AI dominance is heating up, with AMD vying to gain market share against Nvidia’s established leadership.
Key Takeaways:
- AMD is aggressively pursuing AI dominance by appointing Keith Strier, an AI veteran from Nvidia, as Senior Vice President of Global AI Markets.
- Strier’s leadership will focus on expanding AMD’s AI ecosystem and accelerating strategic partnerships globally.
- While AMD grapples with Ryzen 9000 series sales, the company is aggressively acquiring AI server company ZT Systems for $4.9 billion to further its AI ambitions.
- Amidst the intense competition, analysts view Nvidia as the critical AI player, while Microsoft’s AI features will be available on AMD and Intel laptops starting November.
- Despite lagging behind Nvidia in stock performance, AMD is expected to see significant growth in data center GPU revenue in fiscal 2024.
- Investors can gain exposure to AMD through VGT (Vanguard Information Tech ETF) and SOXX (iShares Semiconductor ETF).
AMD’s Bid for AI Dominance
AMD’s recruitment of Strier from Nvidia is a clear indicator of its commitment to expanding its presence in the rapidly growing AI market. With experience in leading AI initiatives for Nvidia, Strier brings a wealth of knowledge and expertise to AMD. His focus will be on developing new AI technologies and fostering strategic alliances to propel AMD’s AI capabilities.
This move comes at a time when other players in the AI market are making aggressive moves. In August, AMD announced its plans to acquire ZT Systems, a prominent AI server company, for $4.9 billion. This acquisition is expected to provide AMD with a significant boost in its AI server infrastructure capabilities.
The Nvidia Challenge
While AMD makes strides in AI, it faces a formidable competitor in Nvidia, widely seen as the dominant force in AI. Analysts like Oppenheimer’s Rick Schafer, Truist Securities’ William Stein, and Wedbush Securities’ Matt Bryson, are bullish on Nvidia’s AI prowess and see the company as a critical player in the sector.
Nvidia’s dominance is likely to be further solidified with the upcoming launch of Microsoft’s AI features on PCs, which will be accessible on both AMD and Intel laptops starting November. This move will further integrate AI into everyday computing, potentially increasing demand for Nvidia’s AI chips.
AMD’s Growth Trajectory
Despite the challenging landscape, AMD is expected to continue its growth in the AI market. JPMorgan analyst Harlan Sur forecasts a $5 billion increase in data center GPU revenue for AMD in fiscal 2024. This growth is attributed to AMD’s successes in securing market share in server and PC CPU markets.
While AMD’s stock has trailed behind Nvidia’s impressive 123% gain in the last 12 months, it has still seen a respectable 24% increase. Investors looking to gain exposure to AMD’s growth story can consider ETFs like VGT and SOXX, which offer diversified investment opportunities in the technology and semiconductor sectors.
The Future of AI
The competition in the AI market is likely to intensify in the coming years, with AMD, Nvidia, and other industry players vying for dominance. AMD’s strategic moves, including the acquisition of ZT Systems and the hiring of prominent AI figures like Strier, indicate the company’s unwavering ambition to become a force in the AI space.
The future of AI is promising, with endless possibilities for innovation and development. With a focus on robust hardware infrastructure, efficient software solutions, and strategic partnerships, AMD is well-positioned to play a significant role in this exciting journey. As AI continues to transform industries and shape the future, AMD’s commitment to AI innovation is likely to pay dividends in the long run.
