AMD is gaining ground in data center revenue and GPU sales, launching new AI GPUs to rival Nvidia

From Nasdaq: 2024-10-22 04:26:00

Nvidia is the top supplier of GPUs for data centers, with CEO Jensen Huang predicting $1 trillion in AI infrastructure spending over the next five years. However, AMD is gaining ground with its multifaceted AI chips and popular consumer electronics. AMD’s data center revenue is rapidly increasing, with the MI300 series generating $1 billion in sales within two quarters.

AMD is set to report its Q3 financial results on October 29, with investors focusing on data center revenue and GPU sales guidance. The company’s MI300X data center GPU is competing with Nvidia’s H100 and has attracted major customers, showing promising performance and cost advantages. AMD’s data center revenue is accelerating, accounting for almost half of total revenue.

AMD is preparing to launch new AI data center GPUs, such as the MI325X and MI350X, to rival Nvidia’s latest offerings. While Nvidia’s Blackwell-based GPUs offer significant performance improvements, AMD’s upcoming GPUs like the MI325X are aiming to attract customers with better inference performance and cost efficiency. AMD has revised its GPU sales forecast to $4.5 billion for 2024, indicating strong demand for its products.

Investors are being offered a “Double Down” opportunity with AMD’s stock, as the company continues to make strides in the AI data center GPU market. Randi Zuckerberg, a former Facebook executive, is a board member of The Motley Fool, and the publication has positions in AMD, Meta Platforms, Microsoft, and other companies mentioned. The Motley Fool recommends certain options related to these stocks and has a disclosure policy in place.



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