AMD: stock rises on launch of new AI chip

(CercleFinance.com) - AMD climbed more than 6% on the New York Stock Exchange on Thursday, following the launch of a new artificial intelligence (AI) chip.


The processor, dubbed the 'AMD Instinct MI300 Series', incorporates the Santa Clara, California-based company's most advanced technologies, with the aim of helping customers design large language models (LLMs).

The company points out that several groups such as Microsoft, Meta and Oracle have already chosen the chip to support their workloads in high-performance computing and generative AI.

This reinforces AMD's expected ramp-up, as well as the credibility of its sales targets", say Wedbush analysts.

The US broker notes that AMD has also revised upwards its estimate of the total AI market, now expected to reach $400 billion by 2027, compared with a previous forecast of $150 billion.

Wedbush points out that AMD's CEO, Lisa Su, has stated that AMD intends to take the lion's share of the market for AI acceleration chips.

Just over an hour after opening, AMD shares were up 6.5%, making them the biggest gainers on the S&P 500 index.

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