AMD forecasts challenger to Nvidia AI chip for 4th quarter, eyes China AI market
Nvidia chips, with the company's CEO saying it sees an «opportunity» to sell its AI chips in China. Shares were up roughly 3.5% in after-hours trading.AMD CEO Lisa Su said AMD is set to ramp production of its MI300 artificial-intelligence chips in the fourth quarter. The MI300 AI accelerator chips are designed to compete against the advanced H100 chips already sold by Nvidia, though they are in short supply.
Su said customer interest in the company's MI300 series chips is «very high» and that AMD expanded its work with «top-tier cloud providers, large enterprises and numerous leading AI companies» during the third quarter. Investors are betting AMD could one day challenge Nvidia in the surging market for advanced AI chips when AMD releases a competing product later this year. AMD's flagship chips exceed the performance limits for sale to China under US export control rules issued last year, and unlike Nvidia and Intel, the company has not yet created special chips for the Chinese market.
On a conference call with investors, Su said that AMD sees sales potential in China's AI market. «Our plan is to, of course, be fully compliant with US export controls. But we do believe there's an opportunity to develop product(s) for our customer set in China that is looking for AI solutions, and we'll continue to work in that direction,» Su said.
AMD has not given a detailed full-year forecast but said it expects sales in its data center business that will contain MI300 sales to be higher in 2023 than 2022's $6.04 billion total. Jenny Hardy, portfolio manager at GP Bullhound, which owns Nvidia and AMD stock, said that Nvidia still faces supply constraints, leaving an opening for AMD's chip. «So if AMD can ramp production and launch
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