On Monday, AMD unveiled its new artificial intelligence processors and also laid out the plan to develop AI chips over the next two years. This plans by AMD to create AI chips is in a bid to challenge the current leaders in artificial intelligence, Nvidia. Advanced Micro Devices (AMD)’s CEO Lisa Su, at the Computex technology trade show in Taipei, introduced the MI325X accelerator, which will be made available in the Q4 of 2024.
Increasing demand for AI chips
The race to develop generative artificial intelligence programs has led to towering demand for the advanced chips used in AI data centers able to support these complex applications.
Santa Clara, California-based AMD has been vying to challenge Nvidia, which currently dominates the lucrative market for AI semiconductors. Nvidia commands about 80% of its share.
AMD MI350 chips
AMD also introduced an upcoming series of chips titled MI350, which is expected to be available in 2025 and will be based on new chip architecture.
Compared to the currently available MI300 series of AI chips, AMD said it expects the MI350 to perform 35 times better in inference, the process of computing generative AI responses. Additionally, AMD revealed the MI400 series will be based on an architecture called “Next”. MI400 will arrive in 2026.
GenAI stock rally
Investors who have poured billions of dollars into Wall Street’s picks-and-shovels trade have been seeking longer-term updates from chip firms as they evaluate the longevity of the booming genAI rally, which so far has shown no signs of slowing down.
AMD AI chip outlook
AMD is aiming at an AI chip product cycle of one year.
CEO of AMD, Lisa Su said in April that the company expects AI chip sales of roughly $4 billion for 2024, an increase of $500 million from its prior estimate.
At the Computex event, AMD also said its latest generation of central processors (CPUs) will likely be available in the second half of 2024.
While businesses generally prioritize spending on AI chips in data centers, some of AMD’s CPUs are used in conjunction with graphics processor units, though the ratio is skewed in favor of GPUs.
AMD detailed architecture for its new neural processing units (NPUs), which are dedicated to handling on-device AI tasks in AI PCs.
Chipmakers have been banking on added AI capabilities to drive growth in the PC market as it emerges from a years-long slump.
Nvidia said it plans to release a new family of AI chips every year.
AMD AI chip buyers
PC providers such as HP and Lenovo will release devices which include AMD’s AI PC chips. AMD said its processors exceed Microsoft’s Copilot+ PC requirements.
AMD shares
AMD’s shares have more than doubled since the start of 2023. Though the surge of AMD shares is very dull in comparison to the more than seven-fold rise in Nvidia’s shares in the same time period. AMD stock at closing was $166.90.
