TL;DR:
- AMD is launching the Instinct MI300 AI chip to compete with Nvidia in the AI market.
- The MI300 is expected to generate $2 billion in sales by 2024.
- AMD will compare the MI300 with Nvidia’s H100, focusing on memory content and bandwidth.
- Nvidia faces delays in releasing its new AI chip, citing integration issues and concerns about U.S. export restrictions.
- Microsoft is collaborating with AMD to incorporate the MI300 into its Azure cloud computing segment.
- Analysts view AMD and Nvidia as top picks in the AI chip market for 2024.
Main AI News:
Advanced Micro Devices Inc. (AMD) is poised to make a significant stride in the world of artificial intelligence (AI) as it prepares to launch its latest cutting-edge chip. The Instinct MI300, a data center graphics processing unit (GPU) accelerator, is set to be unveiled at AMD’s “Advancing AI” event on Wednesday. This move is expected to intensify competition with Nvidia, a major player in the AI landscape.
During the event, AMD will not only introduce the MI300 but also underscore its growing momentum in AI hardware and software partnerships. The company has high expectations for the MI300, anticipating it will generate a substantial $2 billion in sales by 2024.
One point of interest at the event will be the comparison between AMD’s MI300 and Nvidia’s H100. Experts at Wedbush Securities suggest that AMD may specifically highlight the memory content and bandwidth of its new AI chip, demonstrating its prowess in the AI arena.
Nvidia, a formidable competitor for AMD, has been positioned as a strong contender to capture up to 80% of the AI market, according to analysis by Jefferies LLC. Nvidia recently announced the launch of its powerful H200 GPU, which is tailored for AI applications. However, reports from late November indicated a delay in the release of Nvidia’s new AI chip until 2024 due to integration issues with server manufacturers. This delay has raised concerns among investors, who view U.S. restrictions on chip exports to China as a significant risk for Nvidia.
Microsoft’s involvement in the AMD event is also worth noting, as the tech giant has already committed to incorporating AMD’s new chip into its Azure cloud computing segment. Wedbush analysts have suggested that AMD’s investments in AI could drive its future growth, while Nvidia may experience a boost in sales from its AI chip over the intermediate term, setting these two companies as top picks in the AI chip market for 2024, according to Jefferies analysts.
Despite a stellar 85% gain in AMD’s shares this year, they experienced a slight dip of 0.3% in late trading on Tuesday. As the AI race heats up, all eyes are on AMD and Nvidia to see how their respective chips will shape the future of artificial intelligence.
Conclusion:
AMD’s strategic move to introduce the MI300 AI chip is a significant step in challenging Nvidia’s dominant position in the AI market. With high sales expectations and credible partnerships, AMD aims to make a strong impact. Nvidia’s delayed chip release and concerns about export restrictions to China pose potential risks. However, both companies are well-positioned to benefit from the growing demand for AI chips in 2024.
