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Advanced Micro Devices (Nasdaq: AMD) introduced a new AI chip, which it claims can rival Nvidia’s (NASDAQ: NVDA) most powerful offering, H100. With this new product, AMD hopes to disrupt Nvidia’s dominance in the AI processor market, which is expected to hit a valuation of $400 billion by 2027. The chipmaker’s shares climbed 4.4% at Thursday’s opening bell.
AMD Expects New Chip to Become its Fastest Product to Hit $1B in Sales
AMD announced on Wednesday the launch of a new AI chip it hopes could challenge Nvidia’s dominance in the burgeoning tech branch.Revealed during the launch event held in San Jose, California, AMD’s brand-new MI300X chip is “the most advanced AI accelerator in the industry,” the chipmaker’s CEO Lisa Su said, claiming it is more powerful than Nvidia’s current product, H100.So far, the AI chip market has been dominated by Nvidia’s H100 chip, which caused demand to exceed supply levels as leading tech giants, including Microsoft (NASDAQ: MSFT), Meta (NASDAQ: META), Google (NASDAQ: GOOGL), and Amazon (NASDAQ: AMZN) used Nvidia’s offerings to develop their generative AI solutions. This resulted in unprecedented growth for Nvidia, whose stock recently touched an all-time high. However, AMD expects its new MI300 to disrupt Nvidia’s leading position in the market seriously. The company believes it will become the fastest product to hit $1 billion in sales, a target expected to be reached around mid-2024. AMD also launched MI300A, a variant of the MI300X designed specifically for supercomputing operations. The new AMD chips will be used by ChatGPT maker OpenAI, with the startup planning to incorporate the processors in the latest version of its Triton AI software.
“OpenAI is working with and in support of an open ecosystem. We plan to support AMD’s GPUs including MI300.”
– OpenAI engineer Philippe Tillet said.
AMD Up 90% in 2023 as AI Boom Continues
The launch of MI300X represents the latest important AI-related effort for AMD. Investors welcomed the news, sending the chipmaker’s shares rising over 4.4% at the market open on Thursday.Like most of its peers, the Santa Clara-based semiconductor company capitalized on the current AI boom, propelling its stock price nearly 90% since the start of 2023. Still, it remains to be seen whether AMD can challenge Nvidia, whose quarterly revenues tripled year-on-year in the latest quarter. In addition, the chip juggernaut is already working on a new H200 chip that it claims will be a “game-changer.”More By This Author:Google Up 2.6% In Premarket As New AI Model Released To Compete With GPT-4
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