Over the past decade, AMD has undergone a remarkable transformation. From a company once struggling to survive, it has risen, under the steady and strategic leadership of CEO Lisa Su, to become a force to be reckoned with in the datacenter, client computing, and now the embedded and adaptive edge markets.
One of AMD’s fastest-growing businesses is its embedded segment, which now boasts a broad portfolio and a sharp focus on artificial intelligence. As competitors like Intel falter, AMD’s differentiated approach could set it on a path to significant market share gains, particularly in the embedded edge space.
AMD’s Embedded Business Rebound and Push into Edge AI
AMD’s acquisition of Xilinx has been foundational to the success of its embedded business. The acquisition brought a robust portfolio of adaptive computing products—FPGAs, SoCs, and RF technology—which AMD has tightly integrated with its x86 CPUs, GPUs, and NPUs.
In a recent invitation-only fireside chat with analysts, Salil Raje, SVP and GM of AMD’s Adaptive and Embedded Computing Group, showcased the depth of this integration.
Raje outlined AMD’s five-pillar strategy:
- Strengthening its adaptive portfolio
- Improving developer accessibility
- Increasing x86 embedded market share
- Winning high-value custom silicon deals
- Leading in embedded AI
AMD is not just positioning itself as a component supplier; it is becoming a ‘platform enabler’ for industries spanning automotive, aerospace, communications, and robotics.
AMD’s Strategic Edge Over Intel in Embedded
It’s evident that AMD isn’t playing catch-up; it’s forging ahead where others have stagnated. AMD has already achieved revenue leadership in adaptive computing, leaving its competitor, Intel’s Altera (soon to be spun out again), in the dust.
In the embedded CPU space, AMD holds only a 7%-8% market share, but sees this as an opportunity rather than a weakness. ‘We believe we can grow that business significantly faster over the next four to five years,’ Raje stated.
What makes AMD’s approach stand out? It’s flexibility and openness. AMD’s edge strategy doesn’t hinge on any single compute architecture. Instead, it leverages a modular combination of x86, Arm, GPUs, and FPGAs—whatever the application demands.
The company also eschews a black-box approach to its AI software stack, opting to partner with ecosystem players to keep the platform open and customizable. This open strategy contrasts sharply with the more closed approaches of some competitors, particularly in automotive and robotics.
Edge AI: AMD’s Next Big Move
Perhaps the most exciting element of AMD’s embedded strategy is its continued, aggressive push into edge AI. ‘There’s going to be a ChatGPT moment at the edge,’ Raje stated, and AMD wants to be ready for it.
AMD is integrating NPUs into nearly everything, from AI PCs to embedded SoCs. The goal is simple: to deliver low-latency, power-efficient AI acceleration in markets like industrial automation, medical imaging, and autonomous vehicles.
AMD’s recent product launches reflect this vision.
From the versatile Versal AI Edge Gen 2 (fusing ARM cores, FPGA fabric, ISPs, and NPUs) to the powerful EPYC Turin 9005 (with 192 Zen 5 cores), the company is scaling across performance tiers and verticals. It is already winning designs in security, networking, and automotive.
Furthermore, AMD’s AI software tools enable seamless migration of models from cloud training to edge deployment, a unique value proposition that enhances customer loyalty.
Custom Silicon: Playing Offense, Not Defense
AMD’s strengths extend beyond off-the-shelf products. Its custom silicon business, once largely confined to gaming consoles, is gaining traction in automotive, defense, and the datacenter. Importantly, AMD only pursues custom silicon when it can deliver differentiated IP or platform value, such as integrating x86, GPU, or RF IP into unique packages. This is a targeted, value-driven strategy that avoids commoditization.
Chiplets add another layer of flexibility. AMD’s leadership in chiplet architectures enables it to offer semi-custom solutions more cost-effectively, integrating customer IP onto shared platforms. As chiplet adoption grows, AMD’s ability to mix and match compute elements will become a powerful differentiator.
Leadership That Delivers
AMD’s resurgence is largely attributable to the discipline and strategic clarity of CEO Lisa Su. Her turnaround of the company was not a product of bold promises, but of methodical execution, prioritizing innovation, product roadmaps, and market focus. This same DNA is evident in AMD’s embedded and adaptive computing efforts.
Su’s leadership has enabled AMD to avoid the pitfalls that have plagued Intel—missed process nodes, delayed AI strategies, and an over-reliance on legacy business lines. In contrast, AMD now offers products that are often competitive and often lead on power-performance ratio and AI time-to-market.
The Intel Factor: A Window of Opportunity
Intel’s struggles in recent years have opened doors for AMD. From manufacturing delays to uncertainty surrounding the Altera spin-off, Intel’s position in the embedded market is vulnerable. While Intel still dominates the x86 embedded CPU space, its disjointed execution has allowed AMD to gain share, particularly as AI reshapes edge workloads.
AMD’s strengths in heterogeneous computing, its openness to Arm, and its focus on software developers make it more nimble than Intel in responding to evolving edge AI demands. If AMD executes on its roadmap and continues to differentiate through its modular platform approach, it could become the preferred vendor for a wide range of edge workloads.
Platforms of the Future
AMD’s embedded business is no longer just a side bet. It is rapidly becoming a cornerstone of the company’s long-term growth strategy.
The embedded market, once seen as a niche, is now a critical frontier in the broader computing landscape, especially as AI workloads migrate from centralized datacenters to distributed, real-time environments at the edge.
Under the leadership of Lisa Su, AMD’s leadership team has positioned the company to capitalize on this shift through discipline, clarity, and a relentless focus on execution.
The strategy isn’t just about having a broad portfolio; it’s about how it all works together. AMD is offering customers a consistent, scalable compute platform from cloud to edge, combining the flexibility of adaptive hardware with the performance of CPUs, GPUs, and NPUs.
This is particularly important in today’s fragmented edge environments, where power efficiency, latency, and customization define competitive advantage. AMD’s modular approach, enabled by chiplets and customizable silicon, ensures that customers can get precisely what they need without compromise.
The Opportunity to Redefine Embedded Computing
The company’s steadfast commitment to open software ecosystems resonates in markets that are weary of closed, proprietary solutions. This customer-centric approach and differentiated product roadmap are positioning AMD as more than just a component supplier: it is becoming a strategic partner across industries.
As Intel navigates a new CEO, internal reorganizations, and challenges in executing smoothly in embedded and AI, AMD has a rare and meaningful opportunity to gain market share and mind share.
Already, the momentum is visible: new design wins, expanded market share in adaptive and embedded CPUs, and growing traction in the custom silicon business. The path forward is not without challenges. Arm-based entrants, trends toward vertical integration, and software complexity will continue to test all major players, but AMD appears better prepared and positioned than ever before.
It is clear that AMD is not just playing catch-up; it is redefining the embedded game. If it continues to execute with the same precision that has defined its turnaround story, AMD will not only lead in edge AI but will also help define the future shape of the edge itself.
The juxtaposition of AMD’s standing in the semiconductor industry compared to just 10 years ago is nothing short of remarkable.