$Advanced Micro Devices (AMD.US)$ is on the verge of another...
$Advanced Micro Devices (AMD.US)$ is on the verge of another large opportunity in the $80bn AI accelerator market (by CY27E) where AMD's share is again effectively zero against leader $NVIDIA (NVDA.US)$ - BofA
While strong growth, our forecast implies AI accelerators will be <3% of AMD total $27bn+ sales even by CY25E.
AI acceleration is a large market which we est. at $16bn in CY23E potentially growing to $80bn by CY27E. It is dominated by two large incumbents: 1) NVDA with 70-75% share offering the widest product breadth and full-stack solution (300 acceleration libraries, 400 AI models) with 10+ years of software/developer ecosystem and incumbency in public cloud; and 2) AVGO-led custom chip solutions at 10-15% share for $Alphabet-C (GOOG.US)$ $Alphabet-A (GOOGL.US)$ (TPU), $Meta Platforms (META.US)$ and others.
While strong growth, our forecast implies AI accelerators will be <3% of AMD total $27bn+ sales even by CY25E.
AI acceleration is a large market which we est. at $16bn in CY23E potentially growing to $80bn by CY27E. It is dominated by two large incumbents: 1) NVDA with 70-75% share offering the widest product breadth and full-stack solution (300 acceleration libraries, 400 AI models) with 10+ years of software/developer ecosystem and incumbency in public cloud; and 2) AVGO-led custom chip solutions at 10-15% share for $Alphabet-C (GOOG.US)$ $Alphabet-A (GOOGL.US)$ (TPU), $Meta Platforms (META.US)$ and others.
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