Gotrade News - The AI chip showdown between AMD and Nvidia is intensifying in 2026. AMD's server CPU unit share climbed 230 basis points year over year to 27.4%.
AMD shares have also rallied roughly 90% since late last year, lifting forward P/E near 60x. Investors are weighing the runway against Nvidia's push into AMD's most profitable segment.
Key Takeaways
- AMD server CPU share rose to 27.4% in the first quarter while Intel fell to 54.9%.
- Nvidia is pushing into data center CPUs, directly attacking AMD's highest-margin business.
- Marvell shares jumped after AMD disclosed a stake of about 65,500 MRVL shares.
Drivers Behind the AMD Rally
According to Barchart, Advanced Micro Devices (AMD) gained 230 basis points of server CPU unit share. UBS data cited by Barchart shows AMD units grew 15% sequentially while Intel units declined 1%.
AMD's x86 revenue share also climbed to 46.2%, narrowing the gap with Intel at 53.8%. The broader server CPU market expanded 21% in 2025, driven by accelerating AI inference workloads.
AMD now carries a market cap near $686 billion, ranking as the 14th largest US company. CEO Lisa Su projects a total addressable market of $120 billion for the segment by 2030.
As reported by Barchart, UBS analyst Timothy Arcuri models the market closer to $170 billion. Sell-side coverage remains constructive, with 35 of 45 analysts holding a Strong Buy rating on AMD.
Hyperscaler capital expenditure is projected to rise 81% year over year on agentic AI demand. The five largest AI hyperscalers are forecast to spend about $750 billion on AI infrastructure in 2026.
Investor sentiment also got a lift from AMD's newly disclosed position in Marvell Technology. Shares of Marvell Technology (MRVL) rallied on May 19 after the $6.5 million stake was made public.
Competition Risk From Nvidia
Per Seeking Alpha, Nvidia (NVDA) is expanding into data center CPUs in a direct strike. The push pairs Nvidia's dominant AI GPU franchise with a credible move into the x86 server market.
Hyperscalers are also designing in-house AI silicon to cut reliance on outside vendors. That trend could pressure long-term AMD demand even as near-term server CPU growth remains strong.
According to Seeking Alpha, AMD's forward P/E near 60x looks hard to justify given the competitive backdrop. First quarter revenue still grew 37.8% year over year, with momentum from data center products.
Marvell, meanwhile, is benefiting from its vendor-agnostic positioning across AI infrastructure ecosystems. The company posted record revenue of $2.22 billion last quarter, according to Barchart.
Wall Street's mean price target for Marvell sits at $210, suggesting roughly 20% upside potential. Nvidia's earlier $2 billion stake in Marvell also validated the company's strategic role in AI buildout.
