Nvidia continues to hold a leading role in the market for artificial intelligence (AI) chips; however, competition from companies such as Advanced Micro Devices Inc. (AMD) and Huawei is increasing.
AMD Aims to Capture AI Chip Market Share
AMD's CEO Lisa Su believes that the new MI355 chips can stand up to Nvidia's products. At an event in San Jose, California, Su stated that the latest MI350 chips outperform their predecessors by 35 times. AMD hopes that the revamped MI series will help it look strong against Nvidia, targeting the market expected to surpass $500 billion by 2028.
Huawei is Also Competing with Nvidia
In addition to AMD, Huawei is also actively striving to create competitive chips in China. Its Ascend 910D chip is designed to rival Nvidia’s H100. While the 910D shows improvements over the previous model, it still lags in processing speed. However, Nvidia's slow sales in China create opportunities for Huawei, which has already secured orders from major Chinese companies like ByteDance and Baidu.
Prospects of Competition in the Chip Market
Nvidia and AMD are the leading producers of graphics chips, but AMD is confident in its ability to compete with Nvidia. AMD's growth forecasts for its data center business have slowed somewhat, but new chips may increase their market agility. Meanwhile, Huawei faces various challenges related to import sanctions and less advanced technology, which could hinder its future in competition.
Competition between Nvidia, AMD, and Huawei is growing, which could lead to significant changes in the AI chip market. The future of these companies will depend on their ability to adapt to rapidly changing market conditions.
