In its most recent financial report, AMD addressed the Intel–NVIDIA partnership, warning that it expects stronger competition and increased price pressure ahead.
AMD’s business momentum is strengthening in both consumer products and data centers, especially following the launches of flagship RDNA 4 graphics cards and Zen 5 processors. Last quarter the company posted a record revenue of $9.2 billion and expressed a positive outlook.
Nevertheless, the path forward looks challenging. Intel and NVIDIA have pooled resources, committing $5 billion to develop custom chips for desktops and data centers. AMD acknowledged the alliance and highlighted “increased competition and pricing pressure.”
AMD outlined the threat it sees from Intel: the rival is reportedly using its CPU market position to pursue aggressive pricing and to target AMD’s customers, which could reduce sales volumes and average selling prices and hurt AMD’s business.
Concerning NVIDIA, AMD representatives said the company is leveraging its dominance in data-center GPUs, its financial firepower, and its software ecosystem to promote integrated systems that influence AMD’s customer base.
Yet AMD is not conceding ground. OpenAI has shown interest in acquiring the company’s AI chips — a move that could have a significant impact on the market.
Source: iXBT.games