Shares of Nvidia and Advanced Micro Devices (AMD) moved in opposite directions following comments from Arista Networks CEO Jayshree Ullal about shifting deployments toward AMD accelerators.
Nvidia's stock declined nearly 3%, while AMD's stock gained about 1% after Ullal revealed that AMD now accounts for approximately 20-25% of Arista's AI hardware deployments, compared to almost exclusive Nvidia use a year ago.
Nvidia currently holds around 90% of the AI chip market, but AMD's rising adoption, along with competition from Google’s tensor processing units, indicates increasing market pressure on Nvidia’s leadership in AI GPUs.
Arista plays a critical role in AI infrastructure by providing Ethernet switching technology to connect high-performance chips. AMD’s recent partnership with Arista to develop customized AI clusters for training and inference supports AMD's growing presence in this sector.