Advanced Micro Devices (AMD) investors have barely benefited from the stock in 2024. This is surprising as the market’s attention is drawn to the AI prospect. The stock has only increased 6% so far this year. This slowdown was due to Nvidia, a prominent supplier of graphics processing chips (GPUs) for the data center, which developers use to train artificial intelligence (AI) models.
Also Read: De-Dollarization Dies: Payments In US Dollar Increases 9%, Data Shows
AMD typically ranks second in the data center GPU market, although Nvidia has dominated much of it in recent years. The firm now hopes to overtake its Silicon Valley competitor or, at the very least, seize a sizable portion of the industry, which it estimates will be valued at $500 billion by 2028. AMD CEO Lisa Su recently said,
“AI demand has actually continued to take off and actually exceed expectations. It’s clear that the rate of investment is continuing to grow everywhere.”
But, two significant factors could contribute to the rise of AMD stocks.
AMD’s Data Center Revenue
Investors can expect AMD’s data center revenue to continue its upward trajectory in Q3. This is a very good indication that the MI300 is gaining market share. At the end of last year, AMD began releasing its MI300X data center GPU, a direct rival to Nvidia’s flagship H100.
The company’s following Q3 report will focus on the data center sector, which currently generates over half of its total revenue.
Also Read: Zimbabwe’s Gold-backed Currency Dips 40% Against the US Dollar
The MI300 has already drawn some of Nvidia’s largest clients, such as Microsoft, Oracle, and Meta Platforms, and some of them are utilizing the MI300X since it offers better performance and lower costs than the H100.
Data center GPU sales guidance
Investors are required to pay attention to the upcoming MI325X and the MI350X. The MI325X GPU, which will directly compete with Nvidia’s H200 GPU, will begin arriving in the first quarter of 2025.
This reportedly has 30% higher inference performance and 80% more high-bandwidth memory than the H200. As a result, AMD is offering a technological edge that may help draw clients, although its processors are debuting many months later than Nvidia’s.
Also Read: Elon Musk’s Doge Flex Sends Dogecoin Soaring
The market should look out for updates on the company during its upcoming Q3 earnings call with investors.