Home Editor's Picks AMD edges higher premarket after firm reveals new AI chips to take on rival Nvidia

AMD edges higher premarket after firm reveals new AI chips to take on rival Nvidia

by

Investing.com– Advanced Micro Devices (NASDAQ:AMD) unveiled a new line of artificial intelligence chips at the Computex event in Taipei on Sunday, shortly after rival Nvidia (NASDAQ:NVDA) revealed its next generation of chips to power AI development. 

Shares in AMD edged higher in premarket U.S. trading on Monday.

AMD said its new flagship AI chip, the MI325X accelerator, was set for launch in the fourth quarter of 2024. It also announced a new version of its Ryzen CPUs geared towards AI development on laptops and desktops. 

Meanwhile, AMD revealed a new upcoming series of AI chips, dubbed the MI350, which will be available in 2025. 

The firm said it will partner with companies such as software giant Microsoft (NASDAQ:MSFT) and video conferencing group Zoom (NASDAQ:ZM) to integrate more AI functions into consumer electronics.

AMD’s announcement comes just hours after rival and market major Nvidia unveiled its own next generation of AI chips. The new chip architecture was dubbed “Rubin,” and came even as the firm’s upcoming “Blackwell” platform was still in production and scheduled to ship later in 2024. 

AMD has been struggling to catch up with Nvidia, which has come to dominate roughly 80% of the global AI chip market over the past year. The latter also saw an over three-fold spike in valuation over the past year, as its earnings benefited greatly from increased AI demand. 

While AMD has also doubled in valuation this year, it has largely lagged Nvidia in valuation and sales.

According to analysts at UBS, the unveiling of AMD’s product roadmap should, “to some degree, allay concerns around the company’s competitive positioning with Blackwell on the horizon.”

However, they added, “not all questions have been answered, particularly around how it intends to respond to [Nvidia]’s rack-scale systems that appear to be gaining a lot of traction with customers.”

Ambar Warrick contributed to this report.

Related News