AMD Can Add About 50% To Its Value By Capturing Only 10% Of AI Market By 2020

Intel currently dominates the data center market by  huge margin, but the approach of AI processing platforms to artificial intelligence and machine learning has opened up doors for GPU maker like AMD and Nvidia to walk into the AI territory. Nvidia has seen strong growth lately due to success of its Volta GPUs in machine learning applications. This is a huge and strong opportunity for AMD as well, AMD has usually struggled against Intel in the server market but recently the Zen Based Architectures and EPYC CPUS and also the Instinct GPUs in SC17 showed the ability to grow in AI. Nvidia believes that AI addressable market for them is around $30 billion. Forbes has recently estimate that if AMD captures about only 10% of the addressable AI market, its valuation can go up by 50% from the forbs current estimates. Nvidia and AMD can benefit from the advantage that GPUs have in parallel processing and huge data loads in machine learning algorithms and AMD has developed their new AMD Instinct Graphic cards especially to compete with the Tesla V100 graphics made by volta from Nvidia.

In the discrete GPU market like radeon and Gforce graphics, AMD has a 30% share against Nvidia’s 70% in 2017. If AMD could get the AI market as much as it has the market in discrete graphics only in the machine learning GPU market and AMD would go up to target 30% of the total addressable market of Ai that has about $9 billion value. But forbs is not even talking about 30%, only 10% of total can add $3 billion in Enterprise, Embedded and Semi-Custom revenue and $3 Billion In Additional Revenue Will Result In 50% Jump In 2020 EPS, Price Estimate.

AMD Radeon Instinct AMD AI Graphics, Credits by AMD

AMD Radeon Instinct AMD AI Graphics, Credits by AMD

Tags: Technology, AMD, amd value, amd stock value, amd ai, amd datacenter, amd ai market, amd shares, amd market

Mohsen Daemi
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