AMD announces new AI chips to go head-on with Nvidia

Advanced Micro Devices Inc (NASDAQ: AMD) is pushing to the upside this morning after announcing its latest AI processors.

AMD announces the MI325X accelerator

Lisa Su – chief executive of the semiconductor behemoth introduced the MI325X accelerator at an international information technology show in Taipei on Monday.  

AMD is committed to making its new artificial intelligence chip available in the final quarter of 2024. Su told reporters today:

AI is clearly our number one priority as a company and we have really harnessed all of the development capability within the company to do that.

The news arrives about a month after Advanced Micro Devices reported its financial results for the first quarter that came in slightly ahead of Street estimates.

$AMD is committed to generating about $4.0 billion in AI chips sales this year. Its guidance for the current quarter, however, was only in line with expectations last month. Wall Street currently has a consensus “overweight” rating on AMD stock that’s down about 20% versus its YTD high.

AMD reveals chips to be launched in coming years

Advanced Micro Devices is convinced the launch of new AI chips will help it compete better with its rival Nvidia Corp (NASDAQ: NVDA) that currently dominates the AI space with a market share of about 80%.

The Nasdaq-listed firm is following in the footsteps of $NVDA that recently disclosed plans of accelerating its release cycle to annually.

This annual cadence is something that is there because the market requires newer products and newer capabilities … every year we have the next big thing such that we always have the most competitive portfolio.

On Monday, AMD also announced the MI350 series of accelerators that it expects will be available next year. Based on new chip architecture, the MI350 will be about 35 times better than the current MI300 for inference, as per chief executive Lisa Su.

Then in 2026, the multinational will launch the MI400 chip based on another new architecture that it’s calling “Next”. A day earlier, rival Nvidia said Rubin – its next-gen AI chip platform will be available in 2026.

Responding to $AMD’s announcement at “Computex” on Monday, Technalysis analyst Bob O’Donnell applauded its management for taking Nvidia head-on and said “companies looking for alternatives to $NVDA are bound to be happy to hear what AMD had to say”.

AMD stock does not, however, pay a dividend at writing.