Since the famous analyst Ming-Chi Kuo disclosed that AMD's future revenue will be "rapidly growing", AMD's artificial intelligence department will usher in a huge "turnaround" in the next few years. If AMD and NVIDIA are compared together, AMD's advantages in the field of artificial intelligence have always been overshadowed by NVIDIA. This is mainly due to the company's "early" utilization of the artificial intelligence boom, coupled with NVIDIA's superior software resources. However, industry experts hint that AMD is expected to make a comeback soon, possibly as soon as 2024.
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Well-known analyst Ming-Chi Kuo published an article on Medium saying that AMD's artificial intelligence chip shipments may have good growth in 2024. However, compared to NVIDIA's huge share, AMD's shipments are expected to be only 10% of NVIDIA's "CoWoS-based" shipments. This clearly shows that NVIDIA currently occupies the throne of the artificial intelligence industry, and it will take a huge effort and several years to get close to NVIDIA. AMD has planned to acquire startups such as Nod.ai to promote its development of artificial intelligence software resources, but a lot of work still needs to be done.
Ming-Chi Kuo’s predictions for the field of artificial intelligence in 2024-2025 are as follows:
My latest investigation shows that AMD's AI chip shipments in 2024 (mainly MI300A) will be about 10% of NVIDIA's (based on CoWoS).
Microsoft is AMD's largest customer of artificial intelligence chips in 2024 (more than 50% of shipments are to Microsoft), followed by Amazon. Meta and Google are currently testing AMD's AI chips, and Meta is more likely to become the next CSP customer of AI chips.
The main target market for AMD's artificial intelligence chips is CSP, because CSP has excellent software capabilities and can solve AMD's software weaknesses.
It is expected that CSP will remain the main customer of AMDAI chips in 2025. If the cooperation between Microsoft and AMD goes smoothly and it wins orders from Meta and Google, AMD's AI chip shipments are expected to significantly reach 30% or more of NVIDIA (based on CoWoS) in 2025.
Analysts predict that Microsoft will become AMD's largest customer, accounting for the majority of the company's artificial intelligence shipments. Companies like Meta and Amazon are also looking at AMD as an alternative, but that again depends on how AMD supplies Microsoft. Speaking of Microsoft, we have reported that the company is working with OpenAI and is also planning to develop its own artificial intelligence chips, which indicates that the company is either striving for complete independence or looking for suppliers other than Nvidia.
AMD's importance in the artificial intelligence industry depends entirely on the company's attitude towards its software resources, as well as next-generation technologies such as InstinctMI300 and MI400 accelerators, which are also the company's primary strategic plan to seize market share. If AMD can successfully win the trust of potential customers, its AI shipments will increase by 30% (compared to Nvidia's CoWoS-based shipments), which is indeed a huge achievement for AMD. The company's EPYC CPU family has already made significant inroads in the server, workstation and data center markets, but making similar progress in artificial intelligence with rivals like Nvidia may require moving quickly.