On October 10 (U.S. time), AMD held its Advancing AI event in San Francisco, just three days after rival NVIDIA concluded its 2024 AI Summit.

While NVIDIA focused primarily on software updates during its conference, AMD emphasized hardware. The company introduced three key hardware products: the new Instinct MI325X, the fifth-generation EPYC server, and the latest third-generation DPU Pensando series.

In a single day, AMD unveiled new products across three categories: server GPUs, CPUs, and DPUs. AMD’s Chair and CEO, Lisa Su, seems determined to replicate the success she achieved in her first decade at the company, where EPYC servers helped AMD outpace Intel.

During her keynote, Su projected that the AI accelerator market will reach $500 billion by 2028. This time, she appears to have even bigger ambitions: by streamlining server components across different nodes, AMD aims to become the leader in the multi-billion-dollar AI server market.

Su also outlined four core aspects that AMD’s AI platform focuses on:

1. Being the strongest computational engine for training and inference;
2. Offering open software solutions;
3. Building a deep, co-innovative AI ecosystem;
4. Designing systems at the cluster level.

Despite these grand announcements, AMD’s stock fell. On October 10, Thursday (Eastern U.S. time), during the launch of the MI325X AI accelerator and several networking chips, AMD’s stock showed brief gains towards the end of the morning session and early afternoon, but quickly reversed course. By the close of trading, the stock had fallen to $162, down 4% on the day, extending a two-day losing streak and marking the lowest close in over a week. This was also AMD's largest single-day drop since September 3.

source：uSMART SG

Some media outlets suggested the stock drop reflects investors' wait-and-see attitude towards AMD’s AI business delivering tangible returns. While AMD unveiled new chips, the company’s near-term financial outlook hasn't shifted significantly. Like NVIDIA, AMD has committed to releasing new AI accelerators annually to drive innovation. However, AMD still has a long way to go to catch up to NVIDIA. Wall Street has been awaiting signs of progress in AMD’s efforts to close the gap. Investors may need to wait until AMD’s next financial report, expected later this month, to gauge any real progress.

However, John Vinh, an analyst at KeyBanc, remains optimistic about AMD’s trajectory, even if it lags behind NVIDIA. Vinh forecasts AMD will ship 500,000 Instinct MI300X AI accelerators this year, cementing its growing position in the AI market.

Other analysts also noted that the AI hardware space is attracting massive corporate budgets, and AMD is hoping to secure a portion of this growing market. NVIDIA may be the current leader, but some analysts believe that given the vast opportunities in AI hardware, there’s room for multiple companies to succeed.

Whether it’s chipping away at the server CPU market or generating over $1 billion in revenue from its new AI chips in just six months, AMD is showing its aggressive push into data centers. With its rapid AI chip iterations and expanding software-hardware ecosystem, many are eager to see what surprises AMD might bring to the AI computing market.

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Source: uSMART SG

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