Lisa
Su
displays
an
AMD
Instinct
MI300
chip
as
she
delivers
a
keynote
address
at
CES
2023
in
Las
Vegas,
Nevada,
on
Jan.
4,
2023.
David
Becker
|
Getty
Images
AMD
shares
rose
9.9%
Thursday
to
close
at
$128.37,
marking
the
stock’s
best
day
since
May
and
the
highest
close
since
June.
The
surge
comes
a
day
after
it
launched
new
artificial
intelligence
chips
that
will
compete
against
Nvidia
to
power
AI
applications.
On
Wednesday,
AMD
CEO
Lisa
Su
discussed
the
previously
announced
Instinct
MI300X,
a
large
graphics
processor
designed
for
AI-oriented
servers,
and
said
Microsoft
and
Meta
had
committed
to
using
the
chip.
Nvidia
has
dominated
the
AI
chip
market
for
the
past
year,
but
cloud
providers
and
technology
companies
have
been
searching
for
an
alternative
to
save
costs
and
provide
flexibility.
Thursday’s
rise
in
AMD
shares
suggests
investors
believe
the
chipmaker
can
take
a
chunk
of
the
AI
chip
market
from
Nvidia,
although
the
company
projects
only
$2
billion
in
AI
GPU
sales
in
2024
—
lower
than
market
expectations
for
Nvidia
AI
revenue.
Wall
Street
expects
Nvidia
to
post
more
than
$16
billion
in
data
center
sales
in
the
current
quarter
alone,
although
that
metric
includes
other
chips
besides
AI
GPUs.
AMD’s
new
high-end
chip
starts
shipping
in
significant
quantities
next
year.
“We
believe
that
today’s
event
highlighted
how
AMD
remains
extremely
well
positioned
to
take
advantage
of
the
rapidly
expanding
AI
TAM,
as
they
continue
to
stack
up
customer
partnerships
and
roll
out
products
with
impressive
(and
extremely
competitive)
performance
metrics,”
Deutsche
Bank
analyst
Ross
Seymore
wrote
in
a
note
Thursday.
Citi
analysts
estimated
in
a
note
Thursday
that
AMD
could
end
up
with
about
10%
of
the
total
AI
chip
market.
Su
said
at
the
launch
event
Wednesday
that
the
company
believes
the
total
market
for
AI
chips
could
climb
to
$400
billion
over
the
next
four
years,
twice
as
high
as
the
company
previously
believed.
Su
suggested
to
reporters
that
AMD
doesn’t
need
to
beat
Nvidia
to
do
well
in
the
market
for
AI
chips
because
it
will
be
so
large.
“I
think
it’s
clear
to
say
that
Nvidia
has
to
be
the
vast
majority
of
that
right
now,”
Su
told
reporters
Wednesday,
referring
to
the
AI
chip
market.
“We
believe
it
could
be
$400
billion-plus
in
2027.
And
we
could
get
a
nice
piece
of
that.”
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