Nvidia leads the data center computing market, but Advanced Micro Devices (AMD) is catching up. AMD controls 4% of the market, while Huawei has 2%. Despite this, AMD is in a strong position to challenge Nvidia’s lead.
To gain traction, AMD signed deals with OpenAI and Meta Platforms, securing hundreds of thousands of chips and 6 gigawatts of GPUs. These agreements are expected to generate over $100 billion in revenue for AMD alone. Microsoft and Oracle also plan to purchase AMD’s hardware, helping the company gain market share.
AMD’s latest results show growth, with $34.6 billion in revenue for 2025, a 34% increase from 2024. The company’s diluted earnings per share grew 26% during this period. While AMD’s net margin is lower than Nvidia’s, its pricing strategy may help it gain market share.
AMD’s GPUs offer comparable performance to Nvidia’s at lower prices. This could allow the company to snatch market share away from Nvidia even if their hardware is superior in some ways. With these deals and growing revenue, AMD seems to be working towards challenging Nvidia’s dominance.
Source: https://www.fool.com/investing/2026/03/15/this-artificial-intelligence-ai-stock-just-landed