AMD Stock Rises After Its AI Chip Challenges Nvidia
Shares of Advanced Micro Devices rose by nearly 7% as investors reacted to Wednesday’s launch of new chips that aim to challenge Nvidia’s dominance in artificial intelligence computing.
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@AMD Stock Rises After Its AI Chip Rollout Challenges @nvidia
Last year, AMD overtook @intel in market value, as per Bloomberg #amd #chips #semiconductors #AI pic.twitter.com/Wwdn7iucx3— The_Journalbiz (@the_journalbiz) December 7, 2023
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AMD had previously discussed the chips and predicted more than $2 billion of revenue from them next year. On Wednesday, though, it raised its projection of the size of the AI chip market to north of $400 billion in 2027, far above what most analysts—and AMD itself—had been forecasting.
That suggested there was room AMD and others to challenge Nvidia, which analysts estimate has a more than 80% market share in AI chips. AMD also said its chips were as good as some of Nvidia’s models at building complex AI systems, and faster at operating them.
AMD’s launch was one of the most impressive in the past decade and, perhaps, ever, Rosenblatt Securities analyst Hans Mosesmann said in a note. Nvidia “will remain the dominant AI player for years to come but AMD we feel made the case yesterday that they will be an important AI innovator,” he said.
Analyst Gus Richard of Northland Capital Markets said AMD could reach a 20% market share in AI chips over time, as customers look for a second source to Nvidia
