Advanced Micro Devices (AMD) Thursday touted the price and performance benefits of AI data center systems over their rivals. nvidia (NVDA). The chip maker also previewed the full rack system for its customers. However, AMD shares fell on Thursday.
Chief Executive Lisa Su made an announcement at the company's advance AI event.
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She said AMD continues to offer the annual release cadence of its new AI accelerator, with the instinct MI350 series processors currently on the market.
The company has also acquired a position with customers with artificial intelligence chips. Seven of the top 10 AI companies are rolling out their instincts on a massive scale, she said. They include Meta Platform (Meta), Microsoft (msft), openai and Oracle (orcl).
The company's top-level MI355X graphics processing unit offers up to 40% more tokens per dollar than NVIDIA's current B200 GPU.
“We have made remarkable advances in building the underlying products, technology and customer relationships needed to acquire a meaningful portion of this market,” Su said. “And I believe this is on a sudden, long-term growth trajectory that has led AMD to rapidly expand from revenues of more than $5 billion in 2024 to revenues of tens of thousands of dollars in the coming years.”
AMD unveiled the open standard rack-scale AI infrastructure set for wide availability in the second half of 2025. The systems include the AMD Instinct MI350 Series Accelerator, the 5th Generation AMD EPYC Central Processing Unit (CPU), and the AMD Pensando Pollara Network Interface Card (NICS).
Additionally, AMD has previewed the next-generation AI server rack called Helios, scheduled for 2026. Built on the AMDInstinct MI400 series GPU, Zen 6-based AMD EPYC Venice CPUs, and AMD Pensando Vulcano NICS.
“Helios is a real game changer,” Su said. She said it combines all of AMD's technology across processors, software and networking.
AMD stock is pulled back
In today's afternoon trading on the stock market, AMD stock slipped over 1% over 119.21.
Su said AMD is looking at the market for data center AI accelerators that exceeds $500 billion by 2028. This represents a combined annual growth rate of over 60% since 2023.
Su emphasized the importance of open industry standards to drive the development of new technologies. Open systems create more competition, she said, and encourage faster innovation and closures or unique systems.
AMD's rack-scale system was made possible with the company's recent acquisition of ZT systems, which was completed on March 31st. With a complete system approach, AMD gives it a better competitive edge against rival Nvidia, which already sells rack-scale systems.
“That's the main reason we acquired the ZT system a few months ago,” Andrew Dieckmann, general manager of AMD's data center GPU business, told a journalist on Wednesday. With the agreement, he said AMD has joined more than 1,000 engineers skilled in designing data center systems.
“ZT was considered one of the best original design manufacturers in the industry.
According to IBD's stock inspection, AMD shares rank 10th out of 39 shares in IBD's Fabless Chipmaker Industry Group. The IBD composite rating is 79 out of 99.
For a detailed story about consumer technology, software and semiconductor inventory, follow the previous Twitter Patrick Seitz at @IBD_PSEITZ.
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