AMD Can Add 50% To Its Value If Gets Only 10% Of AI Market By 2020

A Nvidia pushing hard and harder on AI solutions and just released the Titan V to enable the PCs with AI super computing. And as Intel currently dominates the AI and datacenter CPU market by huge distance, new opportunities are opening for AMD as the new AI approach of processing in different platforms to involve the artificial intelligence and machine learning. This is greatly happening especially for GPU makers like AMD and Nvidia to walk-in and capture some part of the whole market while its in development process. In the AI territory, Nvidia has seen strong growth lately due to success of its Volta GPUs in machine learning applications and following the trend Just released its Titan V for support of AI in Normal PCs. This is a huge and strong opportunity for AMD to operate as well, AMD has usually struggled against Intel in both gaming and server market but recently the Zen Based Architectures Ryzen and EPYC CPUS and also the Instinct GPUs by vega architecture in SC17 showed the ability to grow in AI and made a lot of new contract and customers for AMD. Nvidia believes that AI addressable market for GPUs 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 both can benefit from the advantage that GPUs have in parallel processing and huge data loads in AI, machine learning algorithms, servers and supercomputing, and AMD has developed their new AMD Instinct Graphic cards based on Vega especially to compete with the Tesla V100 and Titan V 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.

Radeon instinct mi25Radeon instinct mi25

Radeon instinct mi25 credit by AMD

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

Mohsen Daemi
Latest posts by Mohsen Daemi (see all)