AMD is charting an ambitious course in the burgeoning AI landscape, as highlighted by its chair and CEO, Dr. Lisa Su, during a recent appearance at the Goldman Sachs Communacopia & Technology Conference. Su announced that AMD is ramping up its AI initiatives with a strategic rollout of high-performance chips designed to compete directly with industry leader Nvidia.
According to Su, AMD’s AI roadmap is on a tightly scheduled cycle, introducing new products annually. “We’re in the midst of an AI supercycle,” she emphasized, signaling the company’s commitment to seizing a significant share of the rapidly expanding AI chip market. This year, AMD plans to unveil its MI325 AI chip, with subsequent releases including the MI350 next year and the MI400 in 2026, all aimed at challenging Nvidia’s stronghold.
The MI300x, launched approximately a year ago, has already set a high benchmark with its impressive specifications, boasting up to 192GB of memory and an astounding 153 billion transistors. These remarkable capabilities position AMD’s chips as viable solutions for training today’s most sophisticated large language models (LLMs), like OpenAI’s ChatGPT. With AI continuing to gain momentum, AMD is determined to carve out a noteworthy niche in this high-stakes arena.
Looking ahead, AMD anticipates generating around $4.5 billion in sales from its AI chips in 2024, a significant rise from the approximately $100 million generated in AI-related chip sales last year. Initially, AMD’s guidance for the MI300 chip’s revenue was pegged at $4 billion for this year. This rapid growth underscores the MI300 as the fastest-growing product in AMD’s history, a sentiment echoed by analysts.
Jefferies analyst Blayne Curtis noted that AMD’s positive outlook defies earlier concerns about potential supply and technical issues. The company has seen no reductions in orders so far this year from its top customers, including major players like Microsoft, Meta, and Oracle. Curtis maintains that the current estimates around $5 billion in sales support a trajectory of $8-9 billion in 2025.
The fervor surrounding AI technology is undoubtedly driving AMD’s financial performance. The second quarter saw a year-over-year increase in both sales and earnings, rising 9% and 19%, respectively. AMD’s third-quarter revenue forecast projects a year-over-year growth rate of roughly 16%, with a sequential growth expectation of about 15%.
Dr. Su reflected on the scale of the AI revolution, stating, “AI is a much larger cycle than I would have expected five years ago. We are making significant investments now for the next five years.” With ambitions set high for the future, AMD’s concerted efforts in the AI space affirm its positioning as a formidable contender seeking to reshape the industry’s landscape.
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Stay tuned for further updates as the competition in AI heats up, revealing how AMD’s innovative chips could redefine efficiency and performance in the tech industry. With AI increasingly embedded in everyday applications and services, the implications for businesses and consumers alike are endless.