Intel's stock is crashing and their reputation is through the floor. They're on the verge of being taken over, and their latest CPU is a dud.
This is when AMD needs to push hard on both R&D and QA, to capture the marketshare that no longer trusts Intel, but is still wary of AMD because of their failings.
The two major alternatives - ARM64 and RISCV - are also chewing the scenery. Anything AMD doesn't grab will go to these.
As for the AI market, AI needs SIMD. Basically, you want processors that can digest a vector or a matrix in one go. nVidia basically started with a GPU and then bolted on bits that would boost performance for yesterday's algorithms. Meh.
A more sensible approach would be to look at SIMD and vector processing in general, and look for low-ganging fruit that nVidia hasn't considered. Bubbles burst and AMD won't conquer anything with an architecture that's overly specialised - - a mistake Intel made with their iWarp and Itanium lines, and a mistake that basically destroyed Transmeta.