AMD has unveiled its latest AI chips at the COMPUTEX forum in Taipei, Taiwan. The announcement was made by AMD CEO Lisa Su during the opening speech. The new chips are designed to enhance performance in various AI applications.
At Computex 2024, we announced a series of chips for use in AI, including the Ryzen AI 300 series line for next-gen AI laptops and a preview of Instinct MI325X accelerators for data centers.
Read @CNBC's recap of our news: https://t.co/20H4uG0A4Y pic.twitter.com/OXGtz2TcfC
— AMD (@AMD) June 4, 2024
"AMD’s Ryzen AI series not only breaks ground in terms of AI, but in CPU capabilities as well." 💪
See @pcworld's coverage of our AMD Ryzen AI 300 Series announcement at Computex 2024! https://t.co/BPPNI7ArZ3
— AMD (@AMD) June 4, 2024
They mark a significant step for AMD as it aims to capture a larger share of the rapidly growing artificial intelligence sector. AMD’s move puts it in direct competition with industry leader Nvidia. Nvidia currently dominates the AI chip market.
Investment firm Citi has projected that AMD could secure a 10% share of the data center GPU market, which is valued at approximately $15 billion. Citi analyst Christopher Danely expressed confidence in AMD’s strategy.
Surpass ordinary. Play extraordinary. 🏆 AMD Ryzen 9000 Series processors coming July 2024. pic.twitter.com/wabsWNxiGE
— AMD Ryzen (@AMDRyzen) June 4, 2024
AMD vs Nvidia in AI advancements
He emphasized the company’s annual product updates as key to maintaining competitive parity with Nvidia. Danely reiterated his Buy rating on AMD stock, setting a price target of $176.
We continue to expect more upside over the summer and would buy AMD stock on any weakness,” Danely advised in his note. At the Computex conference, AMD announced that its new MI325X GPU will be available in the fourth quarter of this year. The MI350X is expected in 2025, and the MI400 in 2026.
Nvidia, led by CEO Jensen Huang, similarly adheres to an annual release schedule for its next-generation AI accelerators. Earlier this year, AMD projected at least $4 billion in AI-related revenue for 2024. However, Danely believes the figure could be even higher, reflecting increasing optimism about the company’s performance in the expanding AI market.
AMD shares showed positive movement on Tuesday, while Nvidia also saw gains.
