Over the last decade, AMD has transformed from a struggling company to a powerhouse under CEO Lisa Su’s leadership. It has established itself as a key player in the data center, client computing, and now the rapidly growing embedded and adaptive edge markets.
One of AMD’s standout areas of growth is its embedded business, which is quickly gaining traction with a robust portfolio and a laser focus on AI. While competitors like Intel have faltered, AMD’s differentiated approach positions it for significant market share growth, especially in the embedded edge space.
AMD’s Embedded Success and Push into Edge AI
A key element of AMD’s embedded success is its acquisition of Xilinx, which brought a powerful portfolio of adaptive computing technologies—FPGAs, SoCs, and RF technologies—allowing AMD to seamlessly integrate these with its existing x86 CPUs, GPUs, and NPUs.
In an exclusive fireside chat last week, Salil Raje, SVP and GM of AMD’s Adaptive and Embedded Computing Group, detailed how AMD’s integration strategy is paying off. He outlined the company’s five-pillar approach:
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Strengthening its adaptive portfolio
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Enhancing usability for developers
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Expanding x86 embedded market share
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Securing high-value custom silicon deals
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Leading in embedded AI
AMD is positioning itself not just as a component provider, but as a “platform enabler” across industries like automotive, aerospace, communications, and robotics.
AMD’s Edge Over Intel in Embedded Strategy
AMD’s growth trajectory is clear—it’s ahead of competitors like Intel, who are still playing catch-up in several areas. AMD has already claimed revenue leadership in adaptive computing, leaving Intel’s Altera division behind.
Although AMD holds only 7%-8% of the embedded CPU market, it views this as an opportunity rather than a weakness. According to Raje, AMD aims to significantly grow its share in the next four to five years.
What sets AMD apart is its flexibility and openness. Instead of relying on a single compute architecture, AMD uses a modular mix of x86, Arm, GPU, and FPGA, depending on the specific needs of each application. This approach contrasts sharply with more closed, proprietary strategies employed by competitors, particularly in markets like automotive and robotics.
AI at the Edge: AMD’s Next Big Play
A key focus for AMD’s embedded strategy is AI at the edge. “There will be a ChatGPT moment at the edge,” said Raje, and AMD is working to be ready for it.
By integrating NPUs into nearly every product, from AI PCs to embedded SoCs, AMD is preparing to deliver low-latency, power-efficient AI acceleration for industries like industrial automation, medical imaging, and autonomous vehicles.
Recent product launches, such as the Versal AI Edge Gen 2, which combines ARM cores, FPGA fabric, ISPs, and NPUs, as well as the EPYC Turing 9005 with 192 Zen 5 cores, reflect AMD’s commitment to this vision. These innovations are already making a splash in sectors like security, networking, and automotive.
AMD’s AI software tools, which facilitate seamless migration from cloud-trained models to edge deployments, further solidify the company’s customer loyalty by offering an integrated and scalable solution.
Custom Silicon: Playing Offense, Not Defense
AMD’s approach to custom silicon is also gaining momentum. Historically confined to gaming consoles, its custom silicon business is now extending into sectors like automotive, defense, and data centers. AMD’s strategy is focused on providing differentiated intellectual property (IP) or platform value, such as combining x86, GPU, or RF IP into unique packages, rather than pursuing commoditized solutions.
Another advantage is AMD’s leadership in chiplet architecture, which enables the company to offer cost-effective, semi-custom solutions by integrating customer IP into shared platforms. As chiplet adoption increases, this modular approach will become an even more powerful differentiator.
Leadership That Drives Success
A significant part of AMD’s rise can be attributed to Lisa Su’s disciplined and strategic leadership. Su has steered the company away from pitfalls that have affected competitors, such as missed process nodes, delays in AI strategies, and overreliance on legacy business lines. AMD’s success comes from delivering competitive products that often lead the market in power-performance ratios and time-to-market, particularly in AI.
Intel’s Struggles: A Window of Opportunity for AMD
Intel’s recent challenges have opened a door for AMD to capture market share. While Intel remains dominant in x86 embedded CPUs, its manufacturing delays, uncertainty regarding the Altera spinout, and struggles with AI strategy create a window of opportunity for AMD, especially as edge workloads are increasingly driven by AI.
AMD’s flexible and open approach, along with its software-developer focus, gives it an edge in adapting to the evolving needs of edge AI applications compared to Intel’s more rigid and closed portfolio.
A Platform for the Future
AMD’s embedded business is rapidly becoming a cornerstone of the company’s long-term growth strategy. What was once a niche market has become central to the computing landscape, particularly as AI workloads shift from centralized data centers to distributed, real-time edge environments.
Under Lisa Su’s leadership, AMD’s team has positioned the company to capitalize on this shift with a clear, disciplined strategy focused on execution and innovation. AMD’s ability to offer a consistent, scalable compute platform from cloud to edge—blending the flexibility of adaptive hardware with the performance of CPUs, GPUs, and NPUs—gives it a competitive advantage in today’s fragmented edge environments, where power efficiency, latency, and customization are crucial.
AMD’s Opportunity to Redefine Embedded Computing
With its customer-focused, open software ecosystem and differentiated product roadmap, AMD is more than just a component supplier—it’s becoming a strategic partner across industries. As Intel faces leadership changes, internal restructuring, and challenges in the embedded and AI domains, AMD is in an excellent position to gain both market share and mindshare.
The momentum is already clear with new design wins, growing market share in adaptive and embedded CPUs, and expanding custom silicon engagements. While challenges remain, including competition from Arm-based players and the complexity of software integration, AMD is better prepared than ever to redefine the embedded space.
If AMD continues to execute on its vision with the same precision that has defined its turnaround, the company could not only lead in edge AI but also shape the future of embedded computing.
It’s truly remarkable to see where AMD stands today compared to just a decade ago.
