AMD CEO Lisa Su refuses to play second fiddle in the AI chip race to rival Nvidia, led by the black-leather-jacket-wearing Jensen Huang.
"There are going to be multiple winners in this market," Su said on Yahoo Finance Live (video above). "I think there's a great growth opportunity for us; we expect to gain market share."
Su just took her big shot at swiping the AI chip title from Nvidia (NVDA).
At its "Advancing AI" event held in Silicon Valley on Wednesday, AMD (AMD) unveiled its most advanced chip yet targeted at generative AI.
Dubbed the MI300x, it can use up to 192GB of memory, and boasts an astounding 153 billion transistors. Throughout her onstage presentation, Su played up the chip's better performance potential relative to "competitors" — a not so thinly veiled reference to Nvidia.
The beefy memory capabilities mean AMD's new chip could be used to train large language models — such as OpenAI's ChatGPT — commonly known as "LLMs."
Su tells us she has a "line of sight" to $2 billion in sales from this chip alone in 2024, and teased its potential upside.
"What we also said is we plan for success. From my perspective, customer demand is very high. We continue to work with our customers to deploy as quickly as possible, and we have much more supply than $2 billion. I do believe as we go through next year, we'll be able to update those numbers," Su added.
Nvidia's buzzy AI chip is called the H100, which supports 120GB of memory, and has so far been the GPU of choice to power generative AI apps.
But Wall Street is warming up to the notion the AI chip race could see two horses lead the way. The Street gave Su high marks on Thursday for her presentation and team's powerful new chip.
"Rapidly-unfolding hyperscaler engagements, highly competitive AI architecture specs, along with accelerated new product roadmap, bode well for share gains and continued acceleration in AI-related revenue for AMD beyond 2024, while faster-than-expected rate of adoption so far could potentially drive upside in the AI revenue outlook for 2024, in our view. Significant software milestones place AMD on track for high-volume deployments ahead," said Baird analyst Tristan Gerra in a client note.
Gerra rates AMD's stock at outperform with a $125 price target, or about 5% above current price levels.
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email [email protected].
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