AMD's stock surged 9.9% to $128.37, reclaiming a cup-with-handle buy point after unveiling its Instinct MI300X line of AI-optimized chips. The move challenges Nvidia's dominance in the AI market. Despite a muted initial investor reaction, analysts like UBS's Timothy Arcuri are optimistic about AMD's potential, emphasizing its room for growth in large markets.
AMD CEO Lisa Su highlighted the new chips' industry-leading capacity and bandwidth, positioning AMD well for the expanding AI market. While AMD's $2 billion sales projection for 2024 disappointed some, analysts, including Raymond James' Srini Pajjuri, see long-term potential and anticipate double-digit growth.
The event showcased partnerships with Microsoft, Meta, and Oracle, but Amazon and Google were absent. AMD aims to capture a share of the growing AI industry, projecting the market to reach over $400 billion by 2027. Despite AMD's sales being dwarfed by Nvidia's last quarter, analysts recognize AMD's potential to benefit from the increasing AI spending.
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