AMD (AMD, Financial) has announced plans to advance the release of its next-generation GPU, the MI350 series, to mid-2025. This move is aimed at enhancing its competitive edge against major rival NVIDIA. The company anticipates that its data center business will achieve double-digit growth by 2025, with revenues potentially reaching $18.4 billion.
During a recent earnings call, AMD CEO Lisa Su highlighted that the company’s product development is progressing better than expected, driven by strong customer demand. Despite a significant year-over-year increase in AMD's data center revenue, there remains a considerable gap compared to NVIDIA. AMD's data center revenue for the fourth quarter rose by 69% to $3.86 billion, although this fell short of analysts' expectations of $4.12 billion. In contrast, NVIDIA's quarterly data center revenue exceeds several billion dollars, with annual revenues surpassing $100 billion.
Currently, AMD's annual data center revenue is over $5 billion, while NVIDIA's sales exceed $100 billion. However, AMD has successfully acquired key clients such as Meta, Microsoft, and IBM over the past year, expanding its market share. Su also projected that the sales of AMD's Instinct chips will exceed $5 billion in 2024, with data center business expected to see substantial growth in the coming years, driven by robust demand for AI computing.
According to Wall Street analysts, AMD's data center revenue is forecasted to reach $18.4 billion this year, marking a 46% increase. Additionally, competitive pressures from Chinese AI startups like DeepSeek may prompt increased spending by U.S. AI companies, benefiting chipmakers including AMD.
