In an interview with Yahoo Finance Live, AMD CEO Lisa Su noted there was plenty of room for growth in the AI chip sector and that made the competition much more likely to favor multiple winners. She said, “There are going to be multiple winners in this market. I think there’s a great growth opportunity for us; we expect to gain market share.”
She made her statement shortly after she had helmed an event where AMD had debuted its most advanced chip yet, targeting the generative AI field at its “Advancing AI” event held in Silicon Valley Wednesday.
Named the MI300x, it is capable of using as much as 192 GB of memory, with its astounding 153 billion transistors. Throughout her presentation, Su emphasized the chip’s superior performance potential compared to “competitors,” which was clearly a reference to Nvidia.
The large memory capability means the new chip from AMD will be capable of being used to train large language models like OpenAI’s ChatGPT, a form of model commonly referred to as LLMs.
Su said in the interview with Yahoo that she has a “line of sight” to $2 billion in sales just from this chip alone in 2024, as she alluded to its potential upside.
Su added, “What we also said is we plan for success. From my perspective, customer demand is very high. We continue to work with our customers to deploy as quickly as possible, and we have much more supply than $2 billion. I do believe as we go through next year, we’ll be able to update those numbers.”
Meanwhile Nvidia is building buzz around its new H100 chip, which can support 120GB of memory, and has thus far been the preferred GPU for powering generative AI apps.
Wall Street is increasingly thinking that the race to dominate the AI chip field could see two winners. The Street was particularly laudatory of Su’s presentation on Thursday, as well as her team’s powerful new chip.
In a client note, Baird analyst Tristan Gerra said, “Rapidly-unfolding hyperscaler engagements, highly competitive AI architecture specs, along with accelerated new product roadmap, bode well for share gains and continued acceleration in AI-related revenue for AMD beyond 2024, while faster-than-expected rate of adoption so far could potentially drive upside in the AI revenue outlook for 2024, in our view. Significant software milestones place AMD on track for high-volume deployments ahead.”
Gerra rated AMD as “outperform” while setting a price target of $125, which is roughly 5% above current price levels.
