Advanced Micro Devices (AMD)

#2 AI accelerator (MI-series) + EPYC server CPUs — the credible second source to NVIDIA

AI exposure 43% — derived from reported segment revenue, not asserted.

Where it sits

Silicon Layer → Semiconductor Devices · figures rebased to Q2 2026, reported 2026-08-04

EPYC server CPUs + Instinct AI accelerators (MI300/MI400/MI450 Helios) leads 4 businesses in this sub-tier that together are 100% of revenue, so Semiconductor Devices is effectively the whole company rather than one leg of it.

Reported segments

• Data Center — 58% of revenue
• Client — 27% of revenue
• Embedded — 8% of revenue
• Gaming — 7% of revenue

AMD (~$25.8B FY2024, $11.54B Q2 2026 alone, +50% YoY) — CPUs/GPUs/FPGAs. Data Center 58% (EPYC CPUs + Instinct AI accelerators = primary B1, the AI core; Helios rack-scale now ramping with four anchor hyperscalers — Meta, OpenAI, Anthropic, Microsoft Azure) + Client 27% (Ryzen) + Embedded 8% (Xilinx FPGAs) + Gaming 7%. All B1 Semiconductor Devices. Primary B1. NVDA is the main rival. ZT Systems acquisition adds rack-scale AI systems.

How the 43% is built

• Data Center — 58% of revenue × 70% AI-driven (estimate). AMD discloses no Instinct/EPYC split, but Q2 2026 growth rates bound it: server CPU 'grew over 70% YoY' in both cloud and enterprise while Instinct 'more than doubled' off a $3.24B year-ago segment, which only reconciles to $6.72B if data-center AI is roughly half the segment; the AI half is 100% AI and the EPYC half…
• Client — 27% of revenue × 5% AI-driven (estimate). Ryzen PC silicon serves a general consumer/commercial refresh cycle; Ryzen AI NPU-equipped parts add a small on-device-AI slice but Q2 2026 growth (+23%) was a PC-market and share story, not an AI-infrastructure one
• Embedded — 8% of revenue × 10% AI-driven (estimate). Xilinx-derived FPGA/adaptive SoCs serve industrial, comms and test markets; edge-AI/vision inference is a real but modest slice and AMD quantifies no AI share for the segment
• Gaming — 7% of revenue × 0% AI-driven (estimate). Semi-custom console SoCs and Radeon gaming GPUs serve consumer gaming; the segment fell 31% YoY in Q2 2026 on console end-of-cycle, with no AI/data-center linkage

Investment read

Moat. Strong x86 server-CPU franchise (EPYC) + the only credible GPU alternative to NVIDIA (MI300/MI350). Chiplet design lead.

Bottleneck / pricing power. Pricing power limited by NVIDIA dominance in GPUs, but the "second source" premium is real — hyperscalers want AMD to succeed to escape NVIDIA.

Role in the AI stack. The challenger compute layer — CPU strength + GPU optionality.

Connected companies

• Taiwan Semiconductor (TSM) — AMD is supplied by: wafer fab (CPU/GPU)
• Arm Holdings (ARM) — AMD is supplied by: architecture license
• Cadence Design Systems (CDNS) — AMD is supplied by: EDA tools
• Microsoft (MSFT) — AMD supplies: Azure runs production Copilot + models on Instinct MI300X
• Oracle (ORCL) — AMD supplies: OCI MI300X superclusters up to 16,384 GPUs (Sept 2024); 50k MI450 deployment deal announced Oct 2025
• Meta Platforms (META) — AMD supplies: MI300X serves Llama inference at Meta (100% of live Llama 3.1 405B traffic per OCP 2024)
• Alphabet (GOOGL) — AMD supplies: EPYC server CPUs across Google Cloud
• Amazon (AMZN) — AMD supplies: EPYC CPUs powering AWS instances
• IBM (IBM) — AMD supplies: IBM Cloud adds MI300X for watsonx AI inferencing
• Dell Technologies (DELL) — AMD supplies: EPYC CPUs + Instinct GPUs in Dell servers
• Monolithic Power Systems (MPWR) — AMD is supplied by: power-management modules for Instinct GPU boards
• Texas Instruments (TXN) — AMD is supplied by: power-management ICs for server platforms
• Micron Technology (MU) — AMD is supplied by: HBM3E memory for MI300/MI350 accelerators
• SK Hynix (SKHY) — AMD is supplied by: HBM3E memory stacks for Instinct GPUs

Others in Semiconductor Devices

• NVIDIA (NVDA)
• Arm Holdings (ARM)
• Broadcom (AVGO)
• Qualcomm (QCOM)
• Marvell Technology (MRVL)
• Intel (INTC)

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