Advanced Micro Devices is expanding its footprint in artificial intelligence (AI), presenting an opportunity for investors.
Nvidia (NVDA 4.97%) has maintained its dominance in artificial intelligence (AI) semiconductor hardware with its H100 and upcoming H200 data-center graphics chips (GPUs), holding a market share as high as 90% in 2023. However, Advanced Micro Devices (AMD 4.21%) has positioned itself as a formidable competitor. The availability of its new MI300 series of AI data center chips has garnered significant attention, attracting interest from major technology firms and prominent AI developers.
AI is on the verge of extending beyond the confines of data centers, and AMD is introducing a new range of AI chips designed for personal computers and devices. This move aims to empower developers to integrate AI capabilities into the hands of billions of individuals globally. In its recently released financial data for the fourth quarter and full year of 2023 (ending Dec. 31), AMD shared various updates regarding its lineup of AI products. The MI300, in particular, has garnered significant attention as AMD strives to capture a share of the data-center market currently dominated by Nvidia.
The MI300 is available in two configurations. The MI300X functions solely as a GPU, while the MI300A integrates GPU and central processing unit (CPU) chips, forming the world’s inaugural accelerated processing unit (APU) tailored for data centers. The MI300A is specifically chosen for the upcoming El Capitan supercomputer at the Lawrence Livermore National Laboratory (LLNL), anticipated to be the world’s fastest upon activation later this year. The majority of El Capitan’s MI300A chips were shipped by AMD in the fourth quarter, with the remaining chips scheduled for distribution in the current quarter.
The MI300 has garnered attention from prominent clients, not only due to its impressive performance but also as data center operators seek to broaden their infrastructure amidst Nvidia’s ongoing supply challenges. Tech giants such as Microsoft, Oracle, and Meta Platforms are among the notable companies that have adopted MI300 technology. Although AMD is actively competing with Nvidia in the data center realm, it already commands a 90% market share in AI-enabled personal computers. AMD’s Ryzen 7000 series, also recognized as Ryzen AI, consists of CPUs engineered for computers to handle on-device AI workloads. This design eliminates the need for users to depend on cloud or external data centers for running advanced generative AI applications, resulting in a faster and more seamless experience.
Millions of personal computers have already been equipped with Ryzen AI chips, and AMD is poised to introduce a new processor that is anticipated to be more than three times faster. This forthcoming development is expected to further solidify AMD’s leading position in the AI-enabled personal computer space.
