AMD Records Best Quarter Ever, Closes Gap with Nvidia in AI Hardware
AMD has reported its best quarter ever, with record revenue of $11.5 billion, driven by a 50% increase in demand for AI hardware. The company's data centre business brought in $6.7 billion, more than double last year's figure. AMD's growth is seen as a challenge to Nvidia's dominance in the AI hardware market, but Nvidia's software layer, CUDA, remains a significant barrier.
Key points
- AMD reported record revenue of $11.5 billion for the second quarter, a 50% increase from last year.
- The company's data centre business generated $6.7 billion in revenue, more than double last year's figure.
- AMD's growth is driven by increasing demand for AI hardware, with CEO Lisa Su citing AI as a key driver of compute demand across every market.
- Nvidia's data centre business remains several times larger, and its CUDA software layer is seen as a significant barrier to AMD's growth.
- AMD expects around $13 billion in revenue for the third quarter, a 13% increase from the previous quarter.
AMD Records Best Quarter Ever, Closes Gap with Nvidia in AI Hardware
AMD has reported its best quarter ever, with record revenue of $11.5 billion. The company's data centre business was a major driver of this growth, generating $6.7 billion in revenue, more than double last year's figure.
This growth is seen as a challenge to Nvidia's dominance in the AI hardware market. However, Nvidia's software layer, CUDA, remains a significant barrier to AMD's growth. CUDA is a widely-used platform for AI development, and Nvidia's control over this layer gives it a strong moat in the market.
Despite this, AMD's growth is being driven by increasing demand for AI hardware. CEO Lisa Su cited AI as a key driver of compute demand across every market, and the company's guidance for the third quarter suggests that this trend is likely to continue.
AMD expects around $13 billion in revenue for the third quarter, a 13% increase from the previous quarter. This level of growth is likely to be a challenge for Nvidia to match, and could potentially close the gap between the two companies in the AI hardware market.
Sources
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