At the Goldman Sachs Communacopia & Technology Conference on Monday, AMD (AMD) Chair and CEO Dr. Lisa Su emphasized that the AI revolution is in its early stages, as her company gears up for a major expansion in its AI chip offerings. Su revealed that AMD is on a rapid product development trajectory, unveiling new AI chips on a near-annual basis.
“We have accelerated our AI roadmap and are on a one-year cadence of new products,” Su told Yahoo Finance. “It is an AI supercycle.”
AMD’s upcoming lineup includes the MI325 AI chip, set to be unveiled later this year, followed by the MI350 in 2025 and the MI400 in 2026. These advancements are aimed squarely at competing with Nvidia’s (NVDA) dominance in the AI chip market. Su highlighted AMD’s ambition to capture a significant share of the market for training and inference of large language models (LLMs), such as OpenAI’s ChatGPT.
The announcement follows the successful launch of AMD’s MI300x chip, which debuted about a year ago. The MI300x features impressive specifications, including up to 192GB of memory and 153 billion transistors. This high memory capacity positions AMD’s AI chip as a strong contender for training sophisticated LLMs, a sector historically dominated by Nvidia.
AMD is projecting substantial growth in AI chip revenue, with estimates suggesting $4.5 billion in sales from the MI300 alone in 2024, a dramatic increase from approximately $100 million in AI-related chip revenue last year. Su noted that the MI300 has become the fastest-growing product in AMD’s history, with previous guidance estimating around $4 billion in sales for this year.
Jefferies analyst Blayne Curtis has echoed Su’s optimism, noting that AMD’s revenue guidance for the MI300 has surpassed expectations. Curtis also highlighted AMD’s potential to reach $8-9 billion in sales next year, despite supply and technical concerns being overstated.
The surge in AI chip demand is also reflected in AMD’s financial performance. The company reported a 9% increase in sales and a 19% rise in earnings year over year for the second quarter. AMD’s third-quarter revenue outlook predicts around 16% year-over-year growth and approximately 15% sequential growth.
Su’s remarks underscore a broader shift in the tech landscape, with AI emerging as a more significant and expansive cycle than anticipated. “AI is a much larger cycle than I would have expected five years ago,” Su commented. “We are making big bets now for the next five years.”
The excitement surrounding AMD’s AI chip innovations is a key topic on Yahoo Finance’s Opening Bid podcast, where industry experts, including long-time tech analyst Paul Meeks, discuss the implications of the AI revolution.
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