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AMD's Earnings Call: The AI Reckoning

The Widening Gap Between AMD and Nvidia

AMD's latest earnings call was a pivotal moment, revealing the company's place in the AI revolution. While AMD posted record revenues of $6.8 billion, a closer look at the numbers shows a concerning trend.

AMD's data center revenues, which account for its biggest and fastest-growing business unit, reached $3.5 billion - a 122% year-over-year increase. However, this pales in comparison to Nvidia's data center revenues, which clocked in at $26.3 billion, up 154% year-over-year and representing 88% of Nvidia's overall revenue.

This stark difference highlights a crucial insight: Nvidia's AI ecosystem is significantly more dominant than AMD's. Nvidia's Hopper GPUs have become the industry standard for both AI training and inference, with tech giants like Google, Amazon, Microsoft, and Meta Platforms buying hundreds of thousands of these chips.

The AI Exposure Gap

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