AMD Market Cap Surges as Data Center Growth Accelerates
AMD is outpacing Intel in AI chip revenue and gaining market value as investors diversify away from Nvidia amid leadership scandals.
Advanced Micro Devices (AMD) is outpacing Intel in the data center and artificial intelligence chip market, driven by the volume shipping of MI455X graphics cards and Epyc server CPUs. In the previous quarter, AMD's data center segment revenue grew 97% year-over-year to $8.5 billion, surpassing Intel's 78% increase to $7.3 billion. CEO Lisa Su projected that server revenue will double year-over-year in 2027, with data center AI revenue growing faster than previously projected.
Growth has been further bolstered by a partnership with Alphabet Inc., which confirmed that AMD's EPYC Turin will serve as the host CPU for its next-generation Tensor Processing Units. This integration into custom ASIC opportunities, alongside the adoption of Helios and Instinct products, has shifted AMD toward higher-margin data center growth.
AMD shares also experienced significant volatility following an admission by Nvidia CEO Jensen Huang regarding an affair with an alleged Chinese foreign-intelligence asset. Investors seeking alternatives to Nvidia for data-center accelerators drove AMD's market capitalization up by $108.5 billion over two days. While the stock initially surged, some investors caution that these market shifts may not translate into durable market share gains without long-term procurement changes by customers.
