AMD (AMD) is poised to take on AI superchip rival Nvidia (NVDA).
AMD unveiled a state-of-the-art chip on Tuesday targeting cutting-edge generative AI technology. Called MI300x, the product can use up to 192 GB of memory. Powerful memory capabilities mean AMD’s new chips can be applied to large-scale language models for AI, commonly known as ‘LLM’.
AMD’s cognate graphics processing unit (GPU) is the kind that powers OpenAI’s popular ChatGPT AI platform.
And AMD’s new chip could be ripe to take market share from Nvidia’s much-talked-about AI chip called H100, which supports 120GB of memory.
AMD Chairman and CEO Dr. Lisa Su told Yahoo Finance Live (video above) that the technology is transformative and that the announcement was a “special day” for her career and company. Told.
“There’s an incredible amount of technology here. We’re talking about the most complex chip we’ve ever made,” Su explained. “The whole aim is to make AI more accessible, so anyone who wants to use AI needs more GPUs. has efficient GPUs and we believe it will be a big winner in the AI space” market. “
Su believes AMD will be able to make enough chips to support demand by 2024. She declined to disclose the price of the new AI chip.
AMD’s stock fell 3% on Tuesday following news of the product release, despite the technology’s clear promise.
But the stock has surged 82% since the start of the year on hopes that AMD will continue to take market share from struggling rival Intel (INTC) in data centers while rivaling Nvidia in AI chips.
“AMD seems to have won a big win on the design side of the MI300 chip, but given its performance limitations and history of failures, the sustainability of the combined graphics and CPU IC is questionable,” said Citi Chip. Analyst Chris Danely points out in a new customer note. “We expect AMD to continue gaining market share against Intel, but the momentum of its new Genoa products appears to be slower than expected.”
Brian Sotzi Executive editor at Yahoo Finance. Follow Sotzi on Twitter @BrianSozzi and further LinkedIn. Bank Crisis Tips? Email brian.sozzi@yahoofinance.com
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