AMD Stock: AMD unveils new chips as AI challenge intensifies for Nvidia

Advanced Micro Devices (AMD) Wednesday direction Nvidia (NVDA) in the hot market for artificial intelligence application chips. AMD stock price fluctuated following the news.


At a company event on Wednesday, AMD launched its Instinct MI300 series accelerator family. Previewed Earlier this year, the chips were designed to handle massive workloads in artificial intelligence applications.

“This pace of innovation is faster than anything I’ve seen before,” CEO Lisa Su said at the event in San Jose, Calif. “For us at AMD, we’re well-positioned to be able to End-to-end technology provides support.” The infrastructure that defines this new era of artificial intelligence. Su predicts that the market for data center artificial intelligence accelerator chips will surge by 70% annually, reaching more than $400 billion by 2027.

AMD has launched the MI300 series of chips designed to handle heavy computing workloads in artificial intelligence systems. The company expects sales of the new chips to exceed $2 billion by 2024.

The rise of artificial intelligence, including generative AI applications such as OpenAI’s ChatGPT and Google’s Bard, has created strong demand for chips that can provide more powerful processing capabilities. Nvidia, known for its powerful chips used in games and Hollywood special effects, has an early lead in the artificial intelligence era. It started becoming a big trend ten years ago. Now, AMD is looking to challenge Nvidia, whose H100 AI chip is considered the market leader.

superior Today’s stock marketRecently, AMD shares fell 1.6% to 116.45 points. Meanwhile, NVDA shares fell more than 2% to 456.22.

AMD Stock: Focus on Inference

CEO Su said that AMD’s latest chips have industry-leading capacity and bandwidth. In terms of running data model training, the chips are comparable to existing competitors, but she said that AMD’s chips are expected to surpass competitors in the following aspects: Inference, or running artificial intelligence applications after model training.

“I have to say this is really the most advanced product we’ve ever built,” Su said, “and it’s the most advanced AI accelerator in the industry.”

Su also updated AMD’s forecast for the data center artificial intelligence chip market, which the company expects will grow from $30 billion in 2023 to $150 billion in 2027. The company now expects the overall market to exceed $400 billion.

“It’s clear that demand is growing much faster than expected,” Su said.

Senior executives involved in AMD activities also include Microsoft (Microsoft Corporation), Yuan (Mehta) and Oracle (ORCL) who shared how their company is partnering with the chip giant. Microsoft said AMD’s new chips will be available for customers in its cloud business to evaluate starting today.

Challenge NVIDIA

NVIDIA The processors that run most data centers Powering generative artificial intelligence products. This has helped Nvidia achieve triple-digit sales growth for several consecutive quarters. In addition, Nvidia stock’s 215% gain this year ranks first among the S&P 500 stocks.

But challengers are coming. With AMD’s announcement on Wednesday, Intel (International Trade Centre) will hold an event called “AI Everywhere” next week to focus on new processors for data centers.

Thanks to its entry into artificial intelligence data center products, AMD’s stock price has risen by about 70% this year.

In addition, the company’s Latest profit report AMD broke a streak of three consecutive quarters of year-over-year earnings declines. After AMD announced its results on October 31, its stock price rose nearly 10% the next day. The company expects sales in 2024 to exceed US$2 billion. MI300 Artificial Intelligence Accelerator.

Goldman Sachs analyst Toshiya Hari wrote in a Nov. 1 client note that the 2024 sales forecast “supports the view that AMD is well-positioned to participate in the large and growing next-generation AI computing market.”

Additionally, Raymond James analysts led by Srini Pajjuri wrote in a client note previewing Wednesday’s event: “Longer term, we see no reason why AMD cannot capture 10%-20% of the over $100 billion AI accelerator market. % share, this could mean double the growth.” Digital revenue growth and margin expansion over the next 2-3 years. “

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