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AMD’s MI300 series of chips will take on Nvidia’s A100 and H100 products.
Photograph by Sam Yeh/AFP/Getty Images
Advanced Micro Devices stock is being driven by its prospects of taking on
Nvidia
in the market for artificial-intelligence semiconductors. Wall Street analysts are split on its prospects.
AMD
(ticker: AMD) posted solid earnings Tuesday – the stock rose. This was despite guidance that fell short of expectations as investors focused on its future in AI chips.
The narrative around AMD now depends on the success of its MI300X chip, set to launch in the fourth quarter of this year, which will take on Nvidia’s (NVDA) graphics-processing units for market share in powering AI technology.
KeyBanc’s John Vinh is optimistic, calling for a meaningful ramp up of MI300X deliveries next year and around $2 billion in GPU revenue.
“We are firm believers in AMD’s revitalized product road map strategy, and product traction is compelling. However, expectations for share gains and growth are high,” Vinh wrote in a research note.
Vinh maintained a $160 target price for AMD and an Overweight rating on the stock. AMD shares were down 0.5% at $117.02 in premarket trading on Wednesday, after closing up 2.8% the previous day.
AMD Chief Executive Lisa Su told analysts on an earnings call that she expects there will be “multiple winners” in the AI chip race and that the company is investing in its software capabilities – a key advantage for Nvidia currently.
Analysts have largely predicted Nvidia will remain the dominant AI chip player for…
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