Chipmaker Advanced Micro Devices (AMD) saw its shares surge nearly 10% Thursday after unveiling a new series of artificial intelligence (AI) chips aimed at high-performance computing applications.
The new MI300X Series chips represent AMD’s first major push into the rapidly growing AI and machine learning hardware market, which is currently dominated by rival Nvidia. The MI300X chips are designed to accelerate workloads like natural language processing, machine learning training and inference, and scientific computing.
According to AMD, the MI300X delivers over 12 times higher AI training performance compared to today’s GPUs. The chips will be adopted by major cloud computing providers and large enterprise customers needing high-performance compute for AI workloads.
“The MI300X accelerators represent the most advanced AI chips the industry has ever seen,” said AMD CEO Lisa Su. “We are coming to market with a leading combination of performance, programming flexibility and efficiency.”
Multiple analysts believe AMD’s aggressive move into AI chips poses a credible threat to Nvidia’s market leadership position.
“AMD’s new AI chip is a potential game changer,” said Wedbush analyst Matt Bryson. “It has the power and efficiency to disrupt the AI chip market and take share from Nvidia.”
Deutsche Bank analyst Ross Seymore echoed this bullish outlook on AMD’s prospects, predicting the company could capture up to 20% market share over the next few years.
AMD’s stock price closed up nearly 10% Thursday at $128.37 per share following the announcement, marking its highest level since June. The successful launch of the MI300X line is seen as a positive catalyst for the stock heading into 2023.
It remains to be seen whether AMD can significantly erode Nvidia’s commanding lead in AI accelerators. But the launch of the MI300X clearly signals AMD’s intent to compete aggressively in this crucial growth market.
