SANTA CLARA - Shares of Advanced Micro Devices (NASDAQ:AMD) soared today as the company unveiled its new MI300x AI accelerator, setting an ambitious sales target for the next year and revising its Artificial Intelligence (AI) market value projection to $400 billion by 2027. The semiconductor firm's stock surged over 7% after the announcement, reflecting investor optimism about AMD's strategic direction and growth potential in the AI space.
At an event in San Jose, CEO Lisa Su launched the MI300X AI chip along with its variant, the MI300A, which are designed to surpass Nvidia’s H100 GPU in accelerating supercomputing tasks. These latest offerings from AMD underscore the company's commitment to capturing a significant share of the booming AI industry, which it now forecasts to reach $400 billion within the next four years.
The positive market reaction also follows AMD's projection that sales of the MI300X could hit $1 billion by mid-2024, signaling confidence in rapid adoption among customers. This outlook is buoyed by robust customer partnerships that have positioned AMD strongly within the competitive landscape. Deutsche Bank (ETR:DBKGn) analysts have acknowledged AMD's solid footing in the AI market, although Bernstein analysts have retained their Market-Perform rating after evaluating AMD's products against Nvidia’s current offerings.
AMD's stock performance has been notably strong since early 2023, with an increase of nearly 90%, driven in part by demand for AI applications. The Santa Clara-based company has also been integrated into OpenAI's generative AI efforts through Triton AI software, marking a significant application of its GPUs.
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