AMD and NVIDIA: The AI Graphics Card Race Intensifies
Summary
- AMD’s revenue projections for AI graphics cards are set to surge, possibly reaching $19.8 billion in 2026.
- Collaboration with OpenAI is poised to significantly boost AMD’s computing power and revenue.
- The competition remains fierce as NVIDIA continues to dominate with anticipated revenue of up to $300 billion.
In the evolving landscape of artificial intelligence, the graphics card sectors of both AMD and NVIDIA are not just surviving—they are thriving. As of October 19, reports indicate that NVIDIA’s market share in gaming and AI graphics cards has reached an astonishing 90% or more, highlighting the intense competition in this space.
AMD Poised for Growth
Despite the dominance of NVIDIA, AMD is primed to make significant strides, particularly with the upcoming MI450 series AI graphics cards expected to significantly bolster its revenue in the coming year. The collaboration with OpenAI is at the forefront of this strategy, as per their agreement to deploy up to 6GW of AMD graphics card computing power.
Estimates suggest this partnership could translate into tens of billions of dollars in revenue over multiple years, although it’s essential to note that this figure is not a one-time payment. By using the precedent set by NVIDIA’s recent 1GW investment, worth between $40 billion and $50 billion, one could speculate that AMD’s engagement with OpenAI could be valued at no less than $200 billion. However, given the disparity in GPU valuation between the two companies and the understanding that data centers incur additional costs, analysts foresee AMD’s actual revenue contribution around $80 billion.
Revenue Surge Expected in 2026
Looking ahead, AMD and OpenAI’s combined computational power is projected to hit 1GW by 2026, which would catalyze an impressive increase in AMD’s AI graphics card revenue. HSBC has raised AMD’s forecast for AI graphics card revenue in 2026 from $13.9 billion to a remarkable $19.8 billion—a figure that nearly doubles the projected $7.3 billion for 2025.
This growth can be attributed to similar potential agreements with major players like Oracle, Amazon, and Microsoft, who are likely to enter into comparable procurement contracts. These partnerships could further elevate AMD’s revenue from AI graphics cards beyond current expectations.
Comparing Giants: AMD vs. NVIDIA
To put AMD’s projected $19.8 billion revenue into perspective, consider NVIDIA’s forecasted revenue for fiscal year 2025, set at $130.5 billion—a staggering year-on-year increase of 114%. While AMD may not match that growth rate, any increase can pave the way for AMD to capture a larger market share in AI graphics.
Currently, AMD’s AI graphics cards may only account for about 10% of NVIDIA’s revenue, yet the gap is closing. According to more stringent calendar-year calculations, NVIDIA’s revenue projections may soar to a staggering $250 billion or even reach $300 billion. For AMD to remain competitive, it must achieve a rapid growth trajectory.
Conclusion
As we stand on the precipice of an AI-driven future, the competition between AMD and NVIDIA in the graphics card market is heating up. With promising developments on the horizon for AMD, the next few years may redefine the landscape of AI computing. As partnerships with influential tech companies solidify, AMD appears ready to challenge NVIDIA’s long-held supremacy.
In this high-stakes arena, the ability to innovate and capitalize on emerging trends will be essential for both giants, promising a dynamic and thrilling tableau for industry observers and tech enthusiasts alike.
