Advanced Micro Devices (NASDAQ:AMD) Inc’s unveiling of its new Nvidia-killing (hyperbolically speaking) MI300X artificial intelligence-focused chip has gone down a treat with investors.
Shares in the fabless chipmaker closed nearly 10% higher on Thursday and will a few more points when US markets open on Friday.
The MI300X has been positioned as a potentially cheaper competitor to Nvidia’s leading-edge microchips, as the arms race for dominance of the rapidly expanding market for AI-focused hardware heats up.
Expected to ship next year, AMD’s new 192 gigabyte design has already attracted the attention of blue-chip customers Meta Platforms Inc (NASDAQ:FB) and Microsoft Corporation (NASDAQ:MSFT), which have both agreed to purchase the MI300X for certain applications.
Though AMD appears to be eating a few bites of Nvidia Corporations’s lunch, there is no denying that Silicon Valley titan Nvidia remains the clear market leader for the supply side of AI microchip tech.
Nvidia’s shares have also remained strong, having surged a remarkable 225% in 2023. The group’s reputation was sealed after becoming the chipmaking partner of choice for training OpenAI’s landmark ChatGPT large-language model.
Yet, with even OpenAI expressing interest in AMD chips, all the while Huawei gaining traction in the Chinese market, there is no denying that competition is ramping up.