Advanced Micro Devices (NASDAQ:AMD) has unveiled the “Ryzen 8040” microchips designed to enhance AI applications by 60%. Set for integration into laptops and PCs from Q1 2024; these chips are anticipated to drive revenue and stock performance for AMD stock.
Additionally, AMD’s MI300X accelerator microchip, a competitor to Nvidia’s high-powered AI chips, is now available. Meta Platforms and Microsoft have already placed substantial orders for the MI300X chip for their AI models.
These are only some of the great things coming for AMD. Below, let’s discuss some news and updates from AMD stock that you should look at when buying into this semiconductor stock.
AMD and AccelerComm
The AMD T2 Telco Accelerator Card, in collaboration with AccelerComm IP, offers a powerful and efficient platform for 5G O-DU deployments. The solution enhances LDPC forward error correction, optimizing O-RAN systems by offloading processing components and supporting more cell sites per system.
AccelerComm and AMD collaborated closely to advance 5G systems within the Open RAN ecosystem. Will Brown, AccelerComm’s Director of Product Management, emphasized their joint commitment to efficient 5G networks. Mike Wissolik, AMD’s Director of Product Marketing, highlighted the benefits of AMD’s 4th-generation EPYC processors in enhancing Cloud RAN solutions on the T2 Telco Accelerator Card.
MI300 Launch
AMD’s MI300 chips, backed by Lenovo, Supermicro, and Oracle, present a formidable challenge to Nvidia’s AI computing dominance. The MI300X GPUs boast superior memory and AI inference capabilities over Nvidia’s H100, with AMD highlighting cost savings due to improved memory.
AMD unveiled the Instinct MI300X, its most powerful accelerator for generative AI, challenging Nvidia’s dominance in the AI computing realm. The announcement was made during an event in San Jose, California.
The MI300X, part of AMD’s Instinct data center GPU family, will be integrated into Dell Technologies, HPE, Lenovo, and Supermicro servers. The MI300A variant is set to feature in servers from HPE, Supermicro, Gigabyte, and Eviden (an Atos subsidiary), which will arrive next year.
AMD released ROCm 6, positioning it as an open alternative to Nvidia’s CUDA platform. This update includes optimizations for large language models, enhanced libraries, and broader support for various frameworks, AI models, and machine learning pipelines. The introduction of AMD’s Instinct chips aligns with increased demand for AI GPU workloads, providing an alternative amid shortages of Nvidia’s powerful GPUs like the H100.
Bottom line
For many traders, the allure of AI proves irresistible. Investing in AMD stock, a company with diverse revenue streams beyond AI, offers a safer entry into this lucrative field. AMD’s CEO projects a $45 billion addressable market for its AI processors this year, up from an earlier estimate of $30 billion.
AMD is poised for substantial growth with the U.S. AI market alone valued at $103.7 billion last year and projected to reach $594 billion by 2032.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
