Microsoft and Meta to use new AMD chip as an alternative to Nvidia

Advanced Micro Devices Inc (NASDAQ: AMD) ended slightly down on Wednesday even after Meta Platforms Inc (NASDAQ: META) and Microsoft Corp (NASDAQ: MSFT) said they’ll use its latest AI chip as an alternative to Nvidia Corp (NASDAQ: NVDA).

Is MI300X comparable to Nvidia’s H100?

Instinct MI300X – a new accelerator that AMD says will start shipping in the coming months is expected to cost less than the competing products of Nvidia that are priced at up to $40,000.

Lisa Su – the Chief Executive of Advanced Micro Devices even compared the said chip that offers 192GB of HBM3 memory directly with the Nvidia H100 at an investor event today.  

AMD stock is currently up more than 80% for the year.

New AMD chip could hurt Nvidia sales

If the Instinct MI300X does indeed sit well with tech names working on AI applications – it will pose a meaningful competition to Nvidia and may eat into its sales that more than tripled in Q3.

Note that Nvidia has already warned of a hit in its current quarter due to the U.S. restrictions on export of sophisticated chips to China (read more).

On Wednesday, Lisa Su told investors that AMD has enhanced its software suite (ROCm) as well – thereby removing another shortcoming that’s been making artificial intelligence developers prefer Nvidia products.

Wall Street currently has a consensus “buy” rating on shares of the California-based semiconductor behemoth.