AI Titans: Nvidia and AMD Poised to Dominate Through 2030

Artificial intelligence is rapidly transforming the global economy, and two companies, Nvidia and AMD, are leading the charge. Experts predict these tech giants are primed to significantly outperform the S&P 500 in the years ahead.

AI's Massive Economic Impact

AI is projected to inject nearly $15.7 trillion into the global GDP by 2030, according to PwC. Companies driving this revolution are experiencing substantial growth and profitability as a result.

Nvidia's Unstoppable Rise

Nvidia has become the face of the AI revolution, playing a crucial role in building the infrastructure that supports it. Their latest quarterly revenues jumped 56% year-over-year to $46.7 billion.

Data centers accounted for $41.1 billion of this total. Cloud service providers, consumer internet companies, and AI model builders are leveraging Nvidia's advanced systems.

The Blackwell Advantage

Companies like Meta, OpenAI, and Mistral AI utilize Blackwell GB200 systems. These systems train and run complex AI models in data centers, and many providers are transitioning to the next-gen Blackwell Ultra GB300 racks.

Nvidia produces GB300 systems at a rate of 1,000 racks per week, and they expect to accelerate this pace. Their annual product release schedule proves to be a major competitive advantage.

CUDA: Nvidia's Secret Weapon

Nvidia has created a strong competitive edge with its Compute Unified Device Architecture (CUDA) software. Used since 2006, CUDA helps developers program GPUs and build AI systems.

Nearly 6 million developers across 200 countries use CUDA to accelerate workflows. Nvidia's networking business also thrived, generating $7.3 billion in revenue, up 98% year-over-year.

A Trillion-Dollar Opportunity

Management estimates the global AI infrastructure market could reach $3 to $4 trillion by 2030. Nvidia is well-positioned to capture a significant share with its hardware and software ecosystem.

AMD's Growing Presence

AMD is also gaining prominence in the global AI infrastructure build-out, strengthening its position in both the CPU and GPU markets. Second-quarter revenues rose 32% year-over-year to $7.7 billion.

Data Center Growth

Data Center revenues increased 14% to $3.2 billion, fueled by strong demand for EPYC CPUs. These CPUs power cloud and enterprise AI workloads. However, Instinct GPU sales were impacted by export restrictions to China.

Despite this, AMD generated free cash flow of around $1.2 billion in the second quarter. Each GPU task triggers multiple CPU-intensive processes, increasing demand for general-purpose compute infrastructure.

EPYC CPUs Gain Traction

Hyperscalers like Google Cloud and Oracle Cloud Infrastructure have deployed EPYC CPUs. They now power over 100 new cloud instances, and AMD supports nearly 1,200 EPYC cloud instances worldwide.

OEMs such as Hewlett Packard Enterprise, Dell, Super Micro Computer, and Lenovo have launched 28 server systems powered by fifth-generation EPYC processors. AMD is also seeing increased adoption of its MI300 and MI325 Instinct accelerators.

Challenging Nvidia's Lead

Seven of the top 10 AI model builders are now using AMD's Instinct accelerators. AMD claims its recently launched Instinct MI350 accelerators match or exceed GB200 performance.

Oracle has chosen MI355 accelerators for its AI cluster, and OpenAI signed a deal with AMD to deploy 6 gigawatts of AMD GPUs. The company advanced its software ecosystem with the launch of the open-source ROCm 7 stack.

Looking Ahead

AMD is preparing to launch the MI400 series and the Helios full-stack AI system in 2026. While AMD lags Nvidia, it remains a critical alternative in the burgeoning AI infrastructure market.