Core Insights - Intel is attempting to penetrate the AI accelerator market with its Gaudi chip line, which was bolstered by a $2 billion acquisition of Habana [1] - Despite securing some notable clients like IBM, Gaudi 3 has not performed well in the market, with Intel setting a $500 million sales target for 2024 that it failed to meet [2] - Intel has abandoned its Falcon Shores project, opting instead to focus on Jaguar Shores for future rack-scale AI solutions, which are expected to integrate various hardware components [4] Group 1: Intel's AI Strategy - Intel's Gaudi architecture is designed for specific workloads but has not matched the performance of Nvidia's leading AI accelerators [1] - The company faces challenges due to an immature software ecosystem and a complicated product roadmap, which have deterred potential customers [2] - The new leadership under CEO Lip-Bu Tan and the appointment of a new CTO and AI chief indicate a potential shift in Intel's AI strategy [5] Group 2: Competitive Landscape - AMD is advancing rapidly with its Helios rack-scale AI solution set for a 2026 launch, which will combine multiple GPUs and CPUs for enhanced performance [7] - AMD has already secured Oracle as a customer for its current AI solutions and is gaining traction with companies like OpenAI [8] - By the time Intel launches its own solutions, AMD may have established a significant market presence, complicating Intel's competitive position [9] Group 3: Foundry Business Potential - Despite struggles in the AI chip market, Intel's foundry business could benefit from the growing demand for AI chips, with its 18A process entering volume production soon [10] - The company's advanced packaging technology is attracting interest from potential customers, indicating a possible resurgence in its manufacturing capabilities [10] - If demand for AI chips continues to rise, major tech companies may consider Intel for manufacturing, allowing it to participate in the AI boom despite its current market challenges [11]

Advanced Micro Devices (AMD -0.01%) is one of the world's leading suppliers of chips for data centers, personal computers, and even cars. The data center business is the company's main focus right now, as it tries to compete with Nvidia in the market for graphics processing units (GPUs), which are used to develop artificial intelligence (AI). AMD has won several of Nvidia's top customers since launching its first AI GPU, Instinct MI300 series, in late 2023, and it continues to release new versions with more ...

Core Insights - AMD is increasingly confident about achieving over 20% growth in 2025, driven by AI acceleration, CPU dominance, and strategic partnerships [1] - The company anticipates over 60% growth in its AI GPU business this year, fueled by the ramp-up of its MI350 accelerator platform [2] - AMD's AI roadmap is strengthened by partnerships with major cloud providers like Microsoft and Meta, with the upcoming MI400 platform set to compete with Nvidia's offerings in 2026 [3] AI GPU Growth - AMD's MI350 series is expected to see significant demand, highlighted by Oracle's multi-billion-dollar order for 30,000 MI355X GPUs [2] - The MI400 platform aims to redefine AI compute with a flexible architecture, targeting large AI clusters exceeding 100,000 GPUs [3] CPU Market Position - AMD's server CPUs are projected to cross a 50% market share in the long term, having increased from an estimated 32-33% to 37-38% in 2024 [4] - The company expects to gain an additional 500-600 basis points in market share this year, aided by a direct-sales approach that challenges Intel's dominance [4] Diverse Portfolio - AMD's diversified compute portfolio, which includes AI GPUs, server CPUs, gaming, and embedded markets, positions the company for sustained growth in 2025 and beyond [6] - The company's notebook and desktop CPUs have been gaining market share for four consecutive quarters, with a new partnership with Dell expected to drive further growth [5]