Advanced Micro Devices (AMD), introduced its newest AI processors on Monday, along with a roadmap for creating AI chips over the next two years.
TakeAway Points:
- Advanced Micro Devices, introduced its newest AI processors on Monday, along with a roadmap for creating AI chips over the next two years.
- AMD also unveiled the MI350 chip series, which will be built on a revolutionary chip architecture and should go on sale in 2025.
Latest AI Chips
In the fourth quarter of 2024, the MI325X accelerator will be made accessible, according to AMD CEO Lisa Su’s announcement at the Computex Technology Trade Expo in Taipei.
Rising demand for the cutting-edge chips used in AI data centres that can handle these sophisticated applications is a result of the competition to create generative artificial intelligence programmes.
AMD, situated in Santa Clara, California, has been trying to compete with Nvidia, which now holds a large 80% market share and controls the lucrative artificial intelligence chip business.
AMD has now followed suit, with Nvidia having made it apparent to investors since last year that it intends to reduce its release cycle to once a year.
“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,” Su told reporters.
“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.”
MI350 Chip Series
Additionally, AMD also unveiled the MI350 chip series, which will be built on a revolutionary chip architecture and should go on sale in 2025.
AMD stated that it anticipates the MI350 to perform 35 times better in inference—the process of calculating generative AI responses—than the MI300 family of AI chips already on the market. AMD also unveiled the MI400 series, which will debut in 2026 and is built on the “Next” architecture.
Investors looking to assess the longevity of the booming genAI rally—which has not shown any signs of slowing down—have been requesting longer-term updates from chip companies. These investors have poured billions of dollars into Wall Street’s pick-and-shovels trade.
AMD’s Shares has rapidly Increased
Since the beginning of 2023, AMD’s stock has more than doubled. This increase is still insignificant when compared to the more than seven-fold increase in Nvidia’s stock price during the same timeframe.
AMD wants to achieve a one-year release cycle for AI chips. Nvidia also declared that it would launch a new line of AI chips each year.
In April, Su from AMD stated that the company anticipates selling $4 billion worth of AI chips by 2024, a $500 million increase over its previous projection.
AMD also stated during the Computex event that the second half of 2024 will probably see the release of its most recent generation of central processing units (CPUs).
Although AI chips are usually the top priority for enterprises when it comes to data centres, AMD’s CPUs are sometimes employed in conjunction with graphics processing units (GPUs), although the ratio is biassed in favour of GPUs.
The new neural processing units (NPUs) from AMD, which are intended to handle on-device AI tasks in AI PCs, have been described in full.
Chipmakers have been counting on increased AI capabilities to propel PC market expansion as it bounces back from a protracted downturn.
Devices with AMD’s AI PC chips will be released by PC manufacturers, including HP and Lenovo. AMD claimed that their CPUs meet or surpass Microsoft’s Copilot+ PC specifications.
