Broadcom and AMD to Dominate $475 Billion AI Chip Market by 2030

Broadcom and AMD are vying for second place in the $475 billion AI chip market by 2030, behind Nvidia. Analysts at Susquehanna favor AMD to take the silver medal due to its strong position in the market and robust product lineup. The AI chip market is expected to grow significantly in the coming years, driven by increasing demand for AI applications in various industries.

The artificial intelligence (AI) chip market is poised for significant growth, with a projected annual revenue of $475 billion by 2030, according to a recent report by Susquehanna analyst Christopher Rolland Broadcom and AMD Are Set to Share This Much of the $475 Billion AI Chip Market by 2030^[1]. This substantial market presents a prime opportunity for companies to expand their presence. Currently, Nvidia dominates the AI chip market with an 80% market share, but the stage is set for a fierce competition among Broadcom and Advanced Micro Devices (AMD) for the second-largest position.

Broadcom, a leading technology company, is expected to be a major beneficiary of this market shift. The analyst estimates that Broadcom could capture just under 14% of the total AI chip annual revenue by 2030, translating to approximately $65 billion Broadcom and AMD Are Set to Share This Much of the $475 Billion AI Chip Market by 2030^[1]. This projection is based on the assumption that major technology companies will increasingly rely on in-house technology rather than being solely dependent on Nvidia’s processors.

On the other hand, AMD is also positioning itself to be a significant player in the AI chip market. While AMD’s current AI chips have had little impact on Nvidia’s dominance, the upcoming MI400 series, including the MI450 chip, could potentially boost its market share. This series represents AMD’s first rack-scale, 72-processor AI server offering, which could make it a more serious rival in the AI hardware market Broadcom and AMD Are Set to Share This Much of the $475 Billion AI Chip Market by 2030^[1].

The race for second place is not just about market share but also about innovation. Both Nvidia and Qualcomm are leveraging AI to revolutionize chip design. Nvidia’s generative AI model, ChipNeMo, and Qualcomm’s on-device AI capabilities are speeding up the development process and improving the reliability of chips How AI is influencing chip design at NVIDIA and Qualcomm^[2]. This AI-driven approach is expected to become the new standard, ensuring faster launches and better performance for AI applications.

The AI chip market is expected to grow significantly in the coming years, driven by increasing demand for AI applications in various industries. Companies like Broadcom and AMD are well-positioned to capitalize on this growth, with their robust product lines and strategic investments in AI technology. As the market continues to evolve, the competition between these companies is likely to intensify, with each vying for a larger share of the lucrative AI chip market.