I'm here at AMD's Advancing AI event in San Jose, California, where AMD just unveiled a slate of new AI hardware, software, and systems designed to compete with Nvidia and others. Uh, shares are flat for the year, underperforming its major peers, but have rallied 17% in the past 3 months. Joining me here in San Jose, an exclusive interview is Lisa Sue, AMD's CEO and chair.Um, thanks for having me here. Thanks. Thanks for being here, John.So, talk to me about um these systems. You got a chip sitting there ne ...

Core Insights - Advanced Micro Devices (AMD) has announced its next-generation AI chips, the Instinct MI400 series, which are set to ship next year, aiming to enhance its competitive position against Nvidia in the AI chip market [1][2]. Company Developments - The MI400 chips can be assembled into a server rack called Helios, allowing thousands of chips to function as a unified system, which is crucial for AI applications [2][3]. - AMD's CEO Lisa Su highlighted that the Helios rack operates as a single massive compute engine, positioning it against Nvidia's upcoming Vera Rubin racks [4]. - OpenAI's CEO Sam Altman confirmed that OpenAI would utilize AMD's chips, indicating strong industry interest [2][3]. Competitive Landscape - AMD aims to compete with Nvidia's Blackwell chips by offering lower operational costs and aggressive pricing strategies [5][6]. - Currently, Nvidia holds over 90% of the data center GPU market, but AMD is focusing on capturing a share of the projected $500 billion AI chip market by 2028 [10][19]. - AMD's MI355X chip is reported to have seven times the computing power of its predecessor, enhancing its competitiveness against Nvidia's offerings [14][15]. Market Trends - Major cloud companies are expected to invest hundreds of billions in new data center clusters for AI, with $300 billion planned in capital expenditures this year alone [9]. - AMD's AI chip sales reached $5 billion in fiscal 2024, with expectations of 60% growth in the category this year [19]. Technological Advancements - AMD's chips are designed to excel in inference tasks, which are increasingly important for deploying AI applications, and they feature more high-speed memory compared to Nvidia's chips [13][14]. - The company is integrating its GPUs with CPUs and networking chips from its acquisition of Pensando to enhance the performance of its Helios racks [17]. Customer Adoption - AMD's Instinct chips have been adopted by seven of the ten largest AI customers, including OpenAI, Tesla, and Oracle, indicating strong market traction [15].

Core Insights - AMD highlighted its competitive advantages in price and performance for AI data center systems compared to Nvidia, despite a decline in its stock price [1] - The company is experiencing significant adoption of its AI chips, with seven of the top ten AI companies utilizing its Instinct processors [2] - AMD anticipates substantial growth in its data center AI revenue, projecting an increase from over $5 billion in 2024 to tens of billions in the coming years [3] Product Developments - AMD's Instinct MI350 series processors are currently available, and the company is on track with its annual release schedule for new AI accelerators [1][3] - The company introduced an open-standards, rack-scale AI infrastructure set for broad availability in the second half of 2025, featuring advanced AMD technologies [3] - A next-generation AI server rack named Helios is expected to launch in 2026, utilizing the MI400 series GPUs and Zen 6-based Epyc CPUs [4] Market Outlook - AMD projects the market for data center AI accelerators to exceed $500 billion by 2028, indicating a compound annual growth rate of over 60% from 2023 [5] - The company emphasizes the importance of open industry standards to foster competition and innovation in technology development [5] Strategic Moves - The recent acquisition of ZT Systems enhances AMD's competitive position against Nvidia by enabling a complete-systems approach [6][7] - The acquisition brought over 1,000 engineers skilled in data center systems design to AMD, strengthening its capabilities in this area [7]

Advanced Micro Devices (AMD -2.35%) supplies some of the best chips in the world for computers, cars, game consoles, and data centers. The company's data center business is a key focus for investors right now, as demand soars for its graphics processing units (GPUs), which are designed for artificial intelligence (AI) development.AMD, as its known, is still chasing Nvidia in the AI data center market, but the company's latest GPUs could help close the gap. Plus, AMD is already a leading supplier of AI chips ...