SpaceX opted for NVIDIA over AMD for AI infrastructure, raising concerns about AMD’s competitive position in the $2 trillion AI market.
AMD shares declined nearly 14% over the past month, closing at $469.46, despite data center revenue surging 107% to $6.72 billion. The drop follows SpaceX’s decision to build its AI infrastructure using NVIDIA’s Vera Rubin platform, securing 20% of NVIDIA’s next-platform capacity.
NVIDIA’s allocation guarantees, which AMD cannot match, played a key role in SpaceX’s choice. AMD retains anchor customers like OpenAI, Meta, and Anthropic, but the loss of a high-profile client like SpaceX highlights competitive pressures in the AI chip market.
AMD expects the AI market to reach $2 trillion by 2030, but the SpaceX deal underscores challenges in rivaling NVIDIA’s dominance. The stock’s recent decline reflects investor concerns over AMD’s ability to secure flagship clients in a competitive landscape.