AMD rises as analysts weigh in positively on performance of new flagship AI chip By

AMD (NASDAQ:) stock witnessed buying activity in early Thursday trade following the chipmaker's introduction of new accelerator chips targeted at competing in the lucrative artificial intelligence (AI) market,What are the current regular foreign exchange platforms in China where Nvidia (NASDAQ:) currently dominates.

The company highlights its capability to execute AI software more efficiently than comparable products from its rival.

The highlight of the event was the MI300X accelerator, which “appears to be very well positioned to address this market,” according to analysts at Deutsche Bank.

“We believe that 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,” analysts added.

The company expects MI300 sales to exceed $2 billion in CY24 with MI300X likely to attract the bulk of sales. AMD demonstrated metrics that show the MI300 chip outperforming Nvidia’s H100, although Nvidia is due to release H200 in the near future.

AMD also lifted its expected 2027 Data Center Accelerator TAM from $150 billion (originally given last year) to $400 billion. Analysts at Deutsche Bank say this upward revision marks “an impressively large market projection that will imply the need for multiple processor sources.”

“We do not agree with this forecast of $400.0 billion in 2027 but we believe the market will be around $75.0 billion next year. We believe AMD should command around 10% of the market and we believe their main opportunity is in the inference market,” analysts at Citi wrote in a note.

AMD shares are up 2.9% before the bell. They fell 1.3% yesterday.

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