AMD Faces Stock Decline After Unveiling New AI Chips
Advanced Micro Devices Inc. saw its stock drop by 4% after revealing new artificial intelligence chips without disclosing customer information or financial performance details. This marks the biggest single-day decline in over a month for the company, which remains up 11% for the year.
AMD, based in Santa Clara, California, is positioning itself as a strong competitor to Nvidia Corp. in the AI processor market. CEO Lisa Su showcased the company’s latest MI325X processors, boasting superior performance capabilities compared to Nvidia’s H100. These new chips utilize a new type of memory chip, enhancing AI software processing known as inference.
Despite AMD’s efforts to challenge Nvidia’s dominance in AI accelerators, the company still has a long way to go. Wall Street is eagerly awaiting the upcoming quarterly earnings report for signs of progress.
Under Su’s leadership, AMD has overtaken Intel Corp. in market valuation. The company aims to generate $4.5 billion in revenue from its new chips this year and anticipates significant growth in the AI chip market in the coming years.
At the event, Su also announced the release of a new line of server processors based on AMD’s “Turin” technology, further expanding the company’s market presence.
AMD’s strategy differs from Nvidia’s closed system approach, as Su emphasized the company’s openness to collaboration with other industry players like Intel and Nvidia.
Looking ahead, Su highlighted the continued growth in AI demand and the industry’s early adoption of this transformative technology.
AMD is actively exploring new manufacturing partnerships for geographical diversity, with plans to qualify Taiwan Semiconductor Manufacturing Co.’s Arizona facility.
Overall, AMD’s pursuit of innovation in the AI chip market sets the stage for future growth and competition against industry giants like Nvidia.