AMD (NASDAQ:AMD) CEO Lisa Su emphasized the importance of diverse computing solutions in the face of competition with Nvidia (NASDAQ:NVDA) led by her cousin Jensen Huang.

What Happened: Su stated on Wednesday that there is "no one size fits all in computing."

"There's no, you know, only one architecture. Actually, you're going to need the right compute for each application," she added, during an interview with CNBC's Jim Cramer.

Su highlighted that the semiconductor industry benefits from both competition and collaboration among companies.

Su also discussed the future impact of artificial intelligence (AI), predicting that AI will become integral to everyday life across sectors such as business, education, and healthcare. She forecasted the AI accelerator market to reach $400 billion by 2027.

Su concluded by urging patience with tech trends, noting that significant advancements unfold over years, not months.

Why It Matters: The rivalry between AMD and Nvidia has intensified, particularly in the AI sector. Recently, Su highlighted AMD's shift away from flagship gaming GPUs to focus on AI, projecting $4.5 billion in MI300X AI chip sales for 2024. She emphasized that AMD's AI roadmap includes the annual release of new AI chips, starting with the MI325 later this year, followed by the MI350 in 2025 and the MI400 in 2026. This move aims to challenge Nvidia's dominance in AI chip technology.

The competition is heating up as both companies vie for a larger share of the AI market. As of Sep. 13, AMD's stock has risen 39.98% over the past year, while Nvidia's has surged 161.90%. Year-to-date, AMD is up 8.80%, and Nvidia has soared 147.33%. Nvidia's first-mover advantage in the AI space has helped it amass a market cap of over $2.9 trillion, with AMD trailing at around $245 billion.

Price Action: At the time of writing, AMD was trading 3.18% higher during pre-market on Thursday while Nvidia was up by 2.80%, according to Benzinga Pro.