Advanced Micro Devices: New Leading-Edge Chip
Advanced Micro Devices (AMD) is positioning itself as the main disruptive semiconductor alternative to Nvidia. AMD has announced its new leading-edge chip, the MI300, and several large companies have announced the adoption of the AMD chip.
Over the last few years, Nvidia has built up a reputation as the largest company in semiconductors and AI adoption. Nvidia’s market dominance has been reflected in their share price, with the company being labelled as one of the ‘Magnificent 7’. Their share price has risen 182% in the last year and 1,142% in the last five years.
Nvidia reportedly holds an 83% share of the chip market. With such dominance, competitors are striving to improve R&D in order to create chips that effectively and sustainably take market share. It seems that AMD might have just positioned itself as the best placed to compete with Nvidia.
At a recent AMD event, CEO Dr. Lisa Su said the MI300 offers three times higher performance for certain AI data types and seven times the intake performance. AMD also claimed that the MI300 runs AI models much faster than Nvidia’s H100. AMD expects the MI300 to generate more than $2 billion in sales in 2024.
Some of the large adopters include:
- Microsoft’s CTO who stated that the MI300x chips will be available in Azure.
- OpenAI announced that ChatGPT will support the AMD chip.
- Oracle Cloud’s Senior Vice President confirmed their support for the chip.
- Meta’s Senior Director also stated they would use the MI300 chips in their data centres.
Watch closely to see if AMD can meet and exceed their forecasts and secure market share from Nvidia.
The above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation.
*No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.