Analyst: NVIDIA's monopoly on the AI chip market will end in two years, with AMD catching up through CPUs.

Odaily Planet Daily News: AMD’s stock price surged to a record high on Wednesday, as its strong outlook boosted investor confidence in the continued demand for artificial intelligence infrastructure, driving an overall rise in global semiconductor stocks. Analysts and investors believe that AMD is a leader challenging NVIDIA’s dominance in the AI chip sector, and the company also benefits from its focus on the CPU business. CPUs have become important because companies are shifting toward proxy-based artificial intelligence—that is, systems capable of autonomous functions—making the demand no longer limited to GPUs used for training large models. “NVIDIA held a monopoly in the AI chip market for nearly two years, but now other companies are gradually catching up. Meanwhile, the market size continues to expand, leaving room for future growth,” said Michael Orok, Chief Market Strategist at Jones Trading.

Senior stock analyst Matt Britzman of Hargreaves Lansdown stated, “AMD’s story is no longer just about competing with NVIDIA in GPUs… but increasingly shifting toward broader computing opportunities, as the demand for AI workloads grows, with both CPUs and GPUs playing their respective roles.” (Jin10)