AMD (AMD) Chairman and CEO Dr. Lisa Su said her company is just beginning to introduce high-performance AI chips.
“We are accelerating our AI roadmap and introducing new products at a one-year pace,” Su told Yahoo Finance at the Goldman Sachs Communacopia & Technology Conference on Monday. “It’s an AI supercycle.”
Later this year, AMD will unveil its MI325 AI chip, followed by MI350 next year and MI400 in 2026, aiming to give rival Nvidia (NVDA) an edge.
Su added, “We believe this will be a very important part of the training and inference of these large-scale language models.”
The new MI chip teased by Su comes on the heels of the successful MI300x release about a year ago. It can use up to 192 GB of memory and boasts a whopping 153 billion transistors.
This powerful memory capability means AMD’s AI chips can be used to train large-scale language models such as OpenAI’s ChatGPT, commonly known as “LLM.” Nvidia has dominated this space, but AMD is keen to carve out a unique position in the rapidly growing market.
Su said AMD could record sales of $4.5 billion from this chip alone in 2024, and sales of AI-related chips last year were about $100 million. The company’s previous guidance for MI300 was for sales of about $4 billion this year.
This is the fastest growing product in AMD’s history, Su said.
“The higher MI300 guidance (for 2nd quarter) is positive against lower expectations (including ours). AMD notes that supply/technical concerns are overstated and expects higher (We believe) Microsoft (MSFT), Meta (META), and Oracle (ORCL) are the top three) expect market value to remain around $5 billion this year But it still supports the possibility of $8 billion to $9 billion next year,” Jefferies analyst Blaine Curtis said. In client notes.
AI chip momentum continues to strengthen AMD’s sales and earnings.
Second-quarter sales and profits increased 9% and 19%, respectively, compared to the same period last year.
At the midpoint of its third-quarter earnings outlook, AMD expects to grow about 16% year-over-year and about 15% going forward.
“AI is a much bigger cycle than we expected five years ago,” Su said. “We are now making big bets for the next five years.”
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Brian Sozzi is editor-in-chief of Yahoo Finance. Follow Sozzi on X @BrianSozzi And also on LinkedIn. Have a tip about a deal, merger, activist situation, or more? Email brian.sozzi@yahoofinance.com.
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