AMD CEO Lisa Su has declared the start of an artificial intelligence (AI) supercycle, setting the stage for a fierce battle for dominance in the rapidly growing AI chip market. During the Goldman Sachs Communacopia & Technology Conference on Monday, Su outlined AMD’s ambitious AI roadmap, which includes the release of new AI chips annually. This aggressive strategy is aimed squarely at challenging NVIDIA, the current leader in the AI chip space.
AMD’s first new AI chip, the MI325, is set to launch later this year, followed by the MI350 in 2025 and the MI400 in 2026. These chips are specifically designed to handle the demanding computational requirements of training and inference for large language models (LLMs) like OpenAI’s ChatGPT. Su expressed confidence in AMD’s ability to secure a significant share of this market, stating, “We believe we can have a very significant piece of the training and inference of these large language models.”
AMD’s existing MI300x chip, launched last year, already features impressive specifications, boasting 192GB of memory and 153 billion transistors. This makes it ideal for training LLMs, and AMD projects sales of $4.5 billion from the MI300x in 2024, a substantial increase from its $100 million in AI-related chip revenue last year. The company’s ambitious growth projections have been met with enthusiasm by analysts, with Jefferies analyst Blayne Curtis noting that AMD’s MI300 guidance raise is positive and expecting $5 billion in sales this year.
AMD’s strong AI focus is evident in its recent performance. The company reported a 9% increase in second-quarter sales and a 19% increase in earnings year-over-year. It projects a 16% year-over-year growth in third-quarter revenue. This momentum is driven by the rapidly growing demand for AI capabilities across industries. Su emphasized the scale of the AI opportunity, stating, “AI is a much larger cycle than I would have expected five years ago.”
AMD’s commitment to AI is further highlighted by its recent strategic changes. The company has merged its RDNA gaming graphics and CNDA data center efforts into a new unified platform called “UDNA,” which places AI at its core. This demonstrates AMD’s dedication to leveraging its expertise across different areas to create a comprehensive AI solution.
AMD’s aggressive push into the AI space comes at a time when Intel is reportedly facing pressure to revamp its AI strategy to keep pace with AMD and NVIDIA. Intel’s dominance in the chip market is under threat, and it is actively exploring significant strategic shifts to regain its competitive edge. The growing dominance of AMD in the AI sector has not gone unnoticed by market observers, with CNBC’s “Mad Money” host Jim Cramer recently highlighting that Intel is “getting whacked” by AMD’s strong performance.
Earlier this year, Su predicted that AI would become an integral part of everyday life, stating, “AI is the most important technology of the last 50 years.” She envisioned a future where “everyone” would want an AI PC. This vision is now taking shape, as AMD’s aggressive roadmap and its focus on AI position the company for significant growth in the years to come.
