Over the past decade, AMD has undergone a remarkable transformation. Once struggling for relevance, it has risen under the steady and strategic leadership of CEO Lisa Su to become a formidable competitor in the data center, client computing, and now embedded and adaptive edge markets.
One of AMD’s fastest-growing segments is its embedded business, now backed by an expansive portfolio and a sharp focus on artificial intelligence (AI). As rivals like Intel falter, AMD’s unique approach positions it well to capture significant market share, particularly in the embedded edge space.
AMD’s Embedded Rebound and Push Into Edge AI
A key driver behind AMD’s embedded success was its acquisition of Xilinx, which expanded its adaptive computing capabilities. This acquisition added FPGAs, SoCs, and RF technologies to AMD’s portfolio, which the company has tightly integrated with its x86 CPUs, GPUs, and NPUs.
In an exclusive fireside chat with analysts, Salil Raje, SVP and GM of AMD’s Adaptive and Embedded Computing Group, highlighted the depth of that integration. Raje outlined AMD’s five-pillar strategy for success:
- Fortifying its adaptive portfolio
- Improving usability for developers
- Growing x86 embedded market share
- Winning high-value custom silicon deals
- Leading in embedded AI
Rather than simply positioning itself as a component supplier, AMD is positioning itself as a “platform enabler” across industries like automotive, aerospace, communications, and robotics.
AMD’s Edge Over Intel in Embedded Strategy
It’s evident that AMD is not merely playing catch-up — it’s advancing where others are stalling. In the adaptive computing space, AMD now leads in revenue, leaving Intel’s Altera (which is soon to be spun out again) behind.
In embedded CPUs, while AMD currently holds a 7%-8% market share, the company views this as an opportunity for growth rather than a limitation. Raje expressed confidence, saying, “We believe we can grow significantly faster in that business over the next four to five years.”
What sets AMD’s strategy apart? Flexibility and openness. Rather than relying on a single compute architecture, AMD utilizes a modular mix of x86, Arm, GPU, and FPGA, depending on the needs of the application.
The company also avoids a “black-box” approach to AI software stacks, instead partnering with ecosystem players to keep platforms open and customizable. This open strategy stands in stark contrast to the more closed approaches employed by some of its competitors, particularly in the automotive and robotics sectors.
AI at the Edge: AMD’s Next Big Move
The most exciting aspect of AMD’s embedded strategy is its aggressive push into edge AI. “There will be a ChatGPT moment at the edge,” said Raje, and AMD aims to be ready for it.
The company is integrating NPUs into nearly every product, from AI PCs to embedded SoCs. The objective is clear: to deliver low-latency, power-efficient AI acceleration in industries such as industrial automation, medical imaging, and autonomous vehicles.
Recent product launches reflect this vision. From the versatile Versal AI Edge Gen 2, which combines ARM cores, FPGA fabric, ISPs, and NPUs, to the powerful EPYC Turing 9005 featuring 192 Zen 5 cores, AMD is scaling across performance tiers and verticals. The company is already winning sockets in sectors such as security, networking, and automotive.
Additionally, AMD’s AI software tools facilitate seamless migration from cloud-trained models to edge deployments, strengthening customer loyalty with a unique value proposition.
Custom Silicon: Playing Offense, Not Defense
AMD’s advantage lies not just in off-the-shelf products but also in its custom silicon business, which is expanding beyond its traditional gaming console market. Now gaining traction in automotive, defense, and data center sectors, AMD’s custom silicon strategy is highly targeted. The company only pursues custom silicon deals that bring differentiated IP or platform value, such as combining x86, GPU, or RF IP into unique packages. This strategic approach avoids the risk of commoditization.
Chiplet technology adds an additional layer of flexibility. AMD’s leadership in chiplet architectures allows it to offer semi-custom solutions at a lower cost by integrating customer IP onto shared platforms. As chiplet adoption increases, AMD’s ability to modularize compute elements will become a powerful differentiator.
Leadership That Delivers
Much of AMD’s success can be attributed to the discipline and strategic clarity of CEO Lisa Su. Her turnaround of the company is not driven by bold promises but by disciplined execution, innovation, product roadmaps, and market focus. This same approach is evident in AMD’s embedded and adaptive computing initiatives.
Under Su’s leadership, AMD has avoided the pitfalls that have hindered Intel, including missed process nodes, delays in AI strategy, and over-reliance on legacy business lines. In contrast, AMD now delivers products that are often not just competitive but ahead of the curve, particularly in power-performance ratios and time-to-market for AI technologies.
The Intel Factor: A Window of Opportunity
Intel’s struggles in recent years have opened a window of opportunity for AMD. Manufacturing delays and uncertainty surrounding the Altera spinout have left Intel’s position in the embedded market vulnerable. While Intel still dominates the x86 embedded CPU space, its distracted execution has allowed AMD to seize market share, especially as AI continues to reshape workloads at the edge.
AMD’s strength in heterogeneous computing, openness to Arm, and focus on software developers make it far more agile in responding to evolving edge AI needs than Intel’s more rigid portfolio. If AMD executes on its roadmap and continues to differentiate with a modular platform approach, it could become the go-to supplier for a wide range of edge workloads.
A Platform for the Future
AMD’s embedded business is no longer just a side project; it is quickly becoming a cornerstone of the company’s long-term growth strategy.
Once considered a niche, the embedded market is now a crucial front in the broader computing landscape, especially as AI workloads shift from centralized data centers to distributed, real-time environments at the edge.
Under Lisa Su’s direction, AMD’s leadership team has positioned the company to capitalize on this shift with precision, clarity, and a sharp focus on execution.
The strategy is not only about having a broad portfolio but also about how that portfolio works together. AMD is offering customers a consistent, scalable compute platform from the cloud to the edge, blending the flexibility of adaptive hardware with the performance of CPUs, GPUs, and NPUs.
This strategy is particularly important in today’s fragmented edge environments, where power efficiency, low latency, and customization are key competitive advantages. AMD’s modular approach, enabled by chiplets and customizable silicon, ensures that customers can get precisely what they need, without compromise.
AMD’s Opportunity to Redefine Embedded Computing
AMD’s commitment to open software ecosystems resonates in markets that have grown wary of closed, proprietary solutions. This customer-centric approach, combined with a differentiated product roadmap, positions AMD not just as a component supplier but as a strategic partner across various industries.
As Intel contends with internal restructuring and struggles to execute in the embedded and AI spaces, AMD has a rare and valuable opportunity to gain both market share and mindshare.
The momentum is already apparent: new design wins, growing market share in adaptive and embedded CPUs, and deeper traction in custom silicon engagements. While challenges will persist — from the rise of Arm-based players to trends in vertical integration and software complexity — AMD appears better positioned than ever.
It is clear that AMD is not simply catching up; it is redefining the embedded game. If the company continues to execute with the same precision that defined its turnaround, AMD will not only lead in edge AI but will help shape the future of the edge itself.
What a striking contrast to where AMD stood just 10 years ago in the semiconductor industry.
