AMD’s latest chips will give chip makers an edge over Nvidia in the AI race. Yahoo Finance Live features AMD stock and the company’s outlook on artificial intelligence.
video transcript
– But I have to switch gears for a second. That’s because AMD is the talk of the town right now, announcing new AI chips with accelerators that can speed up technology like ChatGPT and other bots. The showcase is labeled as the chipmaker’s answer to NVIDIA’s current dominance in the space. Yahoo Finance executive editor Brian Sotzi sat down with AMD CEO Lisa Su yesterday to ask about his AI role at the company. Please try to hear.
Lisa Sue: Everyone understands the whole idea of ChatGPT and generative AI and co-pilot features, using AI to assist business and personal life, increasing productivity and capabilities. And the underlying technology is the GPU.
– So AMD, just the latest stock to skyrocket on this news. And here in particular, we were listening to some of the conversation from Lisa Su and our very own Brian Sotzi. What particularly struck me is the fact that as long as there are big players in the chip space like AMD and Nvidia who are cloud-first and data center-first, it will still be in this short term. And they can use some of the manufacturing and design of the chips now, and eventually they’ll be able to really meet the demand that’s already coming into the business of both of these chips. We can also manufacture some of the Learning models can be introduced. So you can build applications on top of them.
I think they are the first to benefit from this, but I don’t think that’s necessarily the case…
– But they are a distant second.
– right. Well, I don’t think one will necessarily be a stopper in the trajectory of the other. This doesn’t make Ruben Patterson. Well, Ruben Patterson said he was Kobe’s stopper. It turns out he wasn’t there many years ago. A bit of basketball history for those out there. But at the end of the day, I think this is still a rising tide moment. But it will be interesting to know exactly where these companies need to see their ongoing returns, profits, and portion of their investment.
– right. And I agree that a rising tide lifts all boats. Because while we can see the premarket stock price rising when it comes to AMD, it still hasn’t caught up to Nvidia. But it’s okay. And some were omitted. I was here when Brian interviewed Lisa. So he asked about pricing, which is what analysts want to know. She danced around it. She didn’t answer it directly. So it’s unclear exactly what pricing will be, and she just elaborated on demand.
So the demand clearly exists. And demand for AI chips is expected to grow to a $30 billion market this year, nearly doubling every year for the next few years. So demand exists. So it’s clear they’re gaining momentum. excuse me. sorry.
– fine. In other words, no. I think it’s a great point. And that demand starts in the data center and then moves to other partners they have. If they can partner with his AWS, it will be massive. I mean, we’ve already seen Nvidia come out. And even while they’re talking about DGX Cloud and what it means for AI, and already partnering with companies the size of Google. That being said, we already have some partnerships that we can move forward with. Any sort of partnership or long-term deal or partnership between AWS and AMD could provide the significant tailwind many investors expect in terms of AMD’s earnings.
