Advanced Micro Devices (AMD) stock (NASDAQ:AMD) has experienced an 11% decline over the past week and is down approximately 25% since the start of 2024. In comparison, the S&P 500 has increased by about 22% during the same period, while rival Nvidia (NASDAQ:NVDA) has surged over 160%.

AMD stock plummets 11% as Nvidia surges over 160%

The recent sell-off is attributed to several factors, including a downgrade from “buy” to “neutral” by Goldman Sachs analysts and lowered estimates from KeyBanc Capital Markets and HSBC. Concerns over increasing competition in the GPU market, particularly from Nvidia’s advanced chips and other new entrants in the AI sector, have added to the negative sentiment. Although AMD has been gaining market share from Intel in the CPU space for PCs and servers, there are worries that the overall market may be slowing down. According to IDC data, PC sales rose by just 1.8% year-over-year in Q4 2024 and by 1% throughout 2024.

AMD is introducing new MI350 chips aimed at enhancing its competitive edge. The company has shifted focus from gaming and design GPUs to chips for large language model training and inference in generative AI. Demand for AMD’s MI325 graphics processing units has been described as soft. However, AMD is concentrating on areas with potential for market share capture. The MI350 GPU series, set to launch in late 2025, is projected to deliver 35 times better inference performance than its predecessor, the CDNA 3.

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The AI market is expected to gradually transition from model training to inferencing, which requires less computational intensity. This shift could favor AMD’s AI processors. MLCommons, a testing organization, has noted that AMD’s MI300X is competitive with Nvidia’s H100 GPU in AI inference benchmarks, leading to significant orders from hyperscalers. IBM is set to feature AMD’s MI300X in its cloud services during the first half of 2025, while Oracle has opted for AMD’s accelerated computing chips for its new AI supercluster due to strong performance at competitive pricing.

AMD holds a unique position in the tech industry by leveraging its expertise in both CPUs and GPUs, allowing it to integrate capabilities for efficient processing and accelerated computing tasks, which may provide an advantage in the evolving computer hardware landscape.

The stock’s performance over the last four years has been volatile, with annual returns of 57% in 2021, -55% in 2022, 128% in 2023, and -18% in 2024. The Trefis High Quality (HQ) Portfolio has delivered steadier returns, outperforming the S&P 500, highlighting a difference in volatility and returns. Given concerns about the macroeconomic environment and previous struggles in 2022 and 2024, there is uncertainty regarding AMD’s ability to outperform the S&P over the next 12 months.

Despite challenges, analysts maintain a positive outlook for AMD, with a price estimate of around $160 per share, approximately 35% higher than the current market price. The stock is trading at about 23 times the consensus 2025 earnings, considered reasonable relative to AMD’s projected 26% revenue growth for that year.

In 2024, AMD shares fell by 18% despite growth opportunities as a prospective AI chip maker, struggling to meet investor expectations. AMD’s growth has lagged behind Nvidia’s. For AMD to recover, its AI chips need to demonstrate competitiveness against Nvidia’s offerings, necessitating a significant improvement in growth rates.

AMD’s price-to-earnings ratio is improving but still trails Nvidia’s much lower multiples. Both companies are considered promising investments, but AMD must convince investors that its AI solutions can compete effectively with Nvidia’s established leadership in the market. AMD has significant potential in mature markets, but its future performance may depend on the success of its AI processors. AMD’s AI-market share remains considerably lower than Nvidia’s, with Nvidia holding a 90% share compared to AMD’s 10%.

AMD reported its Q3 results in October 2024, meeting earnings expectations but falling short in terms of revenue outlook for Q4, estimating $7.5 billion against a $7.55 billion analyst consensus. The company may face challenges in meeting the increasing demand for AI processors, with CEO Lisa Su indicating tight chip supplies in 2025. Analysts have expressed concerns that AMD may struggle to meet Wall Street’s estimates for 2025, which range between $8 billion and $9 billion.

AMD is scheduled to disclose its Q4 and full-year 2024 financial results on February 4, following the market’s closing bell.

Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

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Advanced Micro Devices, Inc. (NASDAQ: AMD) has faced analyst downgrades, resulting in its stock trading at recent lows, which some consider a buying opportunity. The company is slated to report Q4 2024 results soon, with focus on its 2025 AI GPU guidance likely to be pivotal.

AMD faces analyst downgrades as market awaits AI GPU guidance

AMD ended 2024 on a lower note, with several analysts downgrading the stock recently following a disappointing CES lineup. Goldman Sachs lowered AMD to a Neutral rating and adjusted the price target from $175 to $129, while HSBC cut its price target from $200 to $110, citing challenges in penetrating the AI GPU market and concerns over memory supply from Samsung affecting the MI325 GPU.

Rosenblatt has been notably bullish on AMD, forecasting substantial growth in 2026 driven by the MI350, with a price target of $250, contrasting the negative sentiment that currently surrounds the stock. At the UBS Global Technology conference, Data Center EVP Forrest Norrod articulated AMD’s goal to secure a 20% market share in the AI GPU space, emphasizing the need to be significant in the ecosystem.

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Growth outlook for 2025

AMD is expected to return to over 20% growth in 2025, with forecasts of $7.5 billion in revenues for Q4 2024, representing year-over-year growth of 22%. The critical focus will be on CEO Lisa Su’s guidance for AI GPU sales in 2025, which the market anticipates could reach between $8 to $10 billion, facilitating potential stock recovery.

In 2024, AMD shipped 327,000 MI300X GPUs, with major customers including Meta (173,000), Microsoft (96,000), and Oracle (38,000). As the AI GPU sales target for 2024 is only $5 billion, the company aims to leverage its existing relationships with significant server spenders like Meta and Microsoft.

AMD’s stock trades at 23 times earnings per share (EPS) targets for 2025, which are estimated to exceed $5. The broader revenue forecast is approximately $32 billion with projected growth of 26%. AMD continues to work with multiple memory vendors to alleviate any supply challenges for the MI325.

Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

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At CES 2025 in Las Vegas, AMD unveiled a range of new chips for laptops, desktops, and gaming handhelds, marking a significant move in the company’s 2025 strategy.

AMD unveils new chips and GPUs at CES 2025

AMD captured a 28.7% share of the desktop CPU segment in Q3 2024, reflecting a 9.6 percentage-point increase from the same quarter in the previous year. In the mobile segment, AMD held 22.3% of the chip market, a rise of 2.8 percentage points from the previous fiscal period.

The centerpiece of AMD’s announcement is the Ryzen 9 9950X3D, designed for gamers and creators. This processor features 16 cores based on AMD’s Zen 5 architecture, with clock speeds reaching up to 5.7GHz. Benchmarks indicate that the 9950X3D performs 8% better on average in popular games like Hogwarts Legacy and Starfield compared to the Ryzen 7950X3D. The Ryzen 9 9900X3D, which has 12 cores clocked at 5.5GHz, will also be released in Q1 2025 alongside the 9950X3D.

A complementary series, called “Fire Range,” targets midrange laptops and ultraportables, launching in the first half of 2025. The Fire Range lineup, which includes the Ryzen 9 9850HX, 9955HX, and 9955HX3D, offers 12 to 16 cores with clock speeds ranging from 5.2GHz to 5.4GHz and consumes around 54 watts, significantly lower than the 170 watts required by the 9950X3D.

AMD stock rises 3.9% during CES 2025: Is $250 within reach?

New AI and handheld processors

AMD is also entering the AI PC market with the new Ryzen AI 300 and Ryzen AI Max series processors. Each chip features a dedicated neural processing unit (NPU) aimed at enhancing specific AI tasks, such as text summarization and image editing in Windows 11. The Ryzen AI 300 series will launch in Q1/Q2 2025 and includes four models—Ryzen AI 7 350, Ryzen AI 5 340, Ryzen AI 7 Pro 350, and Ryzen AI 5 Pro 340—packing 6 to 8 cores clocked at up to 5GHz, with a potential battery life exceeding 24 hours in optimal scenarios.

The Ryzen AI Max series is positioned as AMD’s flagship for AI PCs, featuring 6 to 16 cores clocked up to 5.1GHz and integrated graphics. These processors promise superior performance in 3D rendering and AI applications. The Ryzen AI Max series includes models such as the Ryzen AI Max+ 395 and Ryzen AI Max Pro 390, set to debut in Q1/Q2 2025.

AMD also introduced the Ryzen 200 series, aimed at more budget-friendly devices, which will feature 6 to 8 cores and clock speeds up to 5.2GHz, scheduled for release in Q2 2025.

In the handheld processor segment, AMD showcased the Ryzen Z2 series for lightweight gaming-focused systems. This series includes the Ryzen Z2 Go with four cores clocked at up to 4.3GHz and 12 graphics cores, the Ryzen Z2 Extreme with eight cores at 5GHz and 16 graphics cores, and the standard Ryzen Z2 packing eight cores at 5.1GHz with 12 graphics cores. All three SKUs will be available in Q1 2025.

Graphics cards and AI features

AMD revealed its latest discrete GPUs, the Radeon RX 9070 XT and Radeon RX 9070, based on the new RDNA 4 architecture. These graphics cards aim to enhance ray tracing performance, media encoding quality, and AI acceleration. The RX 9070 XT and RX 9070 will be available from various manufacturers, including Acer, Asus, Gigabyte, and XFX, in Q1 2025.

Additionally, AMD highlighted its FidelityFX Super Resolution 4.0 technology, which uses AI algorithms to upscale game content to near 4K resolution with minimal latency. Moreover, the AMD Adrenalin software has been updated with new AI features, allowing image generation, text summarization for documents like PDFs, and an AI-powered chatbot that answers AMD-related questions.

AMD’s CES 2025 announcements are impressive, but can they truly outpace Nvidia? AMD’s making noise, and their AI push looks strong, but Nvidia’s grip on enterprise AI and high-margin GPUs is tighter than ever. AMD’s playing catch-up well, but stealing the crown? That’s gonna take more than a CES mic drop.

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Advanced Micro Devices (AMD) announced an expanded lineup of processors designed for AI-enabled personal computers aimed at both consumers and commercial users during a preview event at CES 2025, held on Monday.

AMD expands AI processor lineup: Stock outlook varies among analysts

Following a challenging year, AMD’s stock fell 18% in 2024, ending the year at $120.79. However, on Friday, AMD stock rose by 3.9%, closing at $125.37. Rosenblatt Securities named AMD stock one of its eight “best ideas” for the first half of 2025, with analyst Hans Mosesmann rating it as a buy and setting a price target of $250, predicting that AMD will gain market share in CPUs from Intel (INTC) and GPUs from Nvidia (NVDA), according to Investors.com. The company is also expected to benefit from a semiconductor recovery in non-AI chips later in 2025, according to Mosesmann’s December 23 client note.

Conversely, Bernstein analyst Stacy Rasgon reaffirmed a market perform rating on AMD stock, projecting a price target of $150 and expressing a preference for remaining on the sidelines with AMD.

CES 2025: AMD expands AI chip lineup but can it outpace Nvidia

AMD’s market position and financial performance

AMD has made significant progress in the semiconductor industry, competing vigorously against Intel and NVIDIA. Its product portfolio encompasses four key segments: Data Center, Client (PCs), Embedded, and Gaming, with a current market capitalization of $210.58 billion and annual revenue of $24.3 billion. The company’s strategic acquisitions, including the $4.9 billion purchase of ZT Systems in August 2024, are aimed at enhancing its AI infrastructure capabilities for hyperscale customers.

Diving into financial health, AMD reported robust demand across both its data center and PC markets, maintaining a current ratio of 2.5, indicating sound liquidity. Analysts predict earnings per share (EPS) of $3.46 for the current fiscal year and $5.34 for the next, reflecting anticipated profitability growth driven by strong performance in key segments and ongoing strategic initiatives in AI.

In the AI and data center markets, AMD’s aMI300 product line, featuring high-performance GPU accelerators, is projected to generate over $5 billion in revenue for 2024, revised upward from earlier estimates of $4.5 billion. The AI accelerator market is expected to reach $500 billion by 2028, with analysts suggesting that AMD could capture a mid-single digit share.

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While AMD’s focus on AI is paving the way for growth, the company continues to perform well in traditional client and gaming markets. There are signs of resilience in the PC market, where AI-enabled devices could lead to longer upgrade cycles and increased growth prospects. AMD’s technology roadmap is enhancing its competitive stance across multiple segments.

However, AMD faces challenges, particularly in the competitive AI GPU market, where it is up against established players like NVIDIA. Integration risks from the ZT Systems acquisition include potential cultural clashes, technology merging hurdles, and regulatory scrutiny.

Despite previous struggles, some analysts express optimism regarding AMD’s prospects. With a consensus Strong Buy rating supported by 24 Buy and 8 Hold recommendations, the average 12-month price target from analysts stands at $184.37, implying potential gains of nearly 42% for the year ahead.

The MI300 accelerators look promising, and AI-driven growth could be a game-changer if AMD grabs a slice of the $500B AI accelerator market. Rosenblatt’s $250 target is bold, but it’s riding on AMD stealing share from Intel and Nvidia—easier said than done.

On the flip side, Bernstein’s cautious $150 target reflects AMD’s uphill battle in GPUs and potential risks from the ZT Systems buyout. With the stock up 3.9% but down 18% in 2024, this year is do-or-die for AMD. Watch AI execution closely.

Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

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The AMD Ryzen Z2 series has leaked ahead of its planned announcement at CES 2025 according to VideoCardz, showcasing new processors aimed at handheld gaming devices like the Lenovo Legion Go and ASUS ROG Ally. The Z2 lineup is expected to enhance performance and battery life compared to its predecessor, the Z1 range.

AMD Ryzen Z2 series leaks ahead of CES 2025 announcement

Reported by VideoCardz, the Z2 processors are still based on RDNA 3 technology and will include three different chip configurations: Ryzen Z2, Ryzen Z2 Go, and Ryzen Z2 Extreme. The Z2 Extreme will feature 8 Zen 5 cores and 16 RDNA 3.5 compute units, offering significant performance improvements over previous models.

The Ryzen Z2 Go will exclusively power the upcoming Lenovo Legion Go S, catering to budget-conscious gamers with its 4 Zen 3+ cores and 12 RDNA 2 compute units. Meanwhile, the standard Ryzen Z2 will utilize the Hawk Point architecture with 8 Zen 4 cores and 12 RDNA 3 compute units.

Interestingly, AMD hinted that Valve might leverage the Z2 series in upcoming devices. However, Pierre-Loup Griffais from the Steam Deck development team clarified on BlueSky, stating, “There is and will be no Z2 Steam Deck,” suggesting that any mention of Valve was likely referencing third-party devices and not a new Steam Deck.

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AMD plans to unveil the Ryzen Z2 APUs and additional products during its CES 2025 presentation on January 6, 2025, at 11 AM PT. This event is expected to generate substantial anticipation as the handheld gaming market continues to grow rapidly, with competing devices also in development from major companies like Nintendo and Microsoft.

The growing interest in handheld gaming devices underscores the industry’s shift toward accommodating gamers who may not have direct access to their consoles or PCs.

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Chipmakers are attracting significant attention amid the rising demand for artificial intelligence (AI) technologies. This article compares Intel (INTC), Advanced Micro Devices (AMD), and Qualcomm (QCOM) to identify which chip stock presents the highest upside potential as analyzed by industry experts.

Intel’s struggles amid innovation concerns

Intel shares experienced a steep decline of over 60% in 2024, marking the company’s worst performance since its initial public offering in 1971. This downturn raised investor concerns regarding Intel’s lack of innovation, product delays, and strategic missteps under former CEO Pat Gelsinger, who resigned in December 2024. Investors are particularly disappointed that Intel missed opportunities in the generative AI sector compared to competitors like Nvidia.

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The company is attempting to regain investor confidence by reducing costs, streamlining operations, and enhancing manufacturing and product offerings. However, skepticism remains due to Intel’s historical challenges in execution.

According to Nasdaq, Citi analyst Christopher Danely maintains a Hold rating on Intel, with a price target of $22. Danely’s reservations about Intel are rooted in concerns about the company’s strategic direction and leadership, particularly regarding the search for a new CEO. He also suggested that exiting the foundry business could enhance Intel’s financial performance and stock value. Wall Street collectively rates Intel as a Hold, comprising 21 Holds, five Sells, and one Buy recommendation. The average price target for INTC stands at $24.53, indicating a potential upside of 19.3%.

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AMD’s growth potential in AI

Advanced Micro Devices shares have seen a 7.4% decline over the past year. The company has struggled to exploit AI chip opportunities as effectively as Nvidia and has faced challenges in its gaming and embedded segments that affected overall performance. Nevertheless, AMD projects strong growth in the AI space, increasing its full-year sales estimate for AI-accelerators to over $5 billion from an earlier forecast of $4.5 billion. A 122% rise in data center revenue in Q3 solidified CEO Lisa Su’s confidence in demand from cloud providers for AI infrastructure development.

Northland analyst Gus Richard reiterated a Buy rating on AMD, setting a price target of $175 according to Nasdaq. He identified AMD as a top pick for 2025, predicting continued market share gains in AI GPUs, server CPUs, and the PC sector as pressures in the gaming and embedded segments ease. Richard expected a more robust PC refresh cycle than previously anticipated, foreseeing more upside than risks for AMD in 2025. Overall, AMD holds a Moderate Buy consensus rating based on 23 Buys and eight Holds, with an average price target of $184.52, suggesting a 47.2% upside potential.

Qualcomm’s diversification efforts amid concerns

Qualcomm shares gained approximately 15% over the past year. The company is a significant chip supplier for smartphone manufacturers but faces worries regarding potential business losses after its contract with Apple for modem chips concludes in 2026. To mitigate this, Qualcomm is diversifying into high-growth areas such as AI, the Internet of Things (IoT), and automotive sectors, with its automotive business reporting a 68% year-over-year revenue growth to $899 million in Q4 FY24.

Qualcomm also achieved a favorable ruling in its legal dispute with Arm Holdings, affirming that it did not breach licensing agreements related to its acquisition of Nuvia in 2021. KeyBanc analyst John Vinh maintained a Hold rating on Qualcomm with a price target of $150, citing ongoing macro challenges and company-specific risks as reasons for his cautious stance, according to Nasdaq. Despite a Moderate Buy consensus rating—comprising 11 Buys, 10 Holds, and one Sell—the average price target for QCOM at $199.88 indicates a potential 26.6% upside.

Analysts generally exhibit more optimism toward AMD and Qualcomm while remaining cautious on Intel, recognizing a greater potential for growth in AMD stock compared to the others.

Which one though?

Deciding between Intel, AMD, or Qualcomm as a chip stock investment depends on your investment goals, risk tolerance, and market outlook. Intel may appeal to value investors hoping for a turnaround, though skepticism around its innovation and leadership remains a risk. AMD offers strong growth potential in AI and data centers, with analysts optimistic about its market share gains, but it faces competition and ongoing challenges in gaming and embedded segments. Qualcomm stands out for its diversification into automotive and IoT markets, but its reliance on smartphone chips and uncertainties surrounding its Apple contract may temper enthusiasm. Each stock has unique risks and opportunities, making it crucial to align your choice with your investment horizon

Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

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Advanced Micro Devices (AMD) has seen a 19% decline in stock value over the past year, despite a broader market surge with the S&P 500 and Nasdaq Composite rising by 24% and 30%, respectively. The decline sharply contrasts with competitor Nvidia, which experienced a 172% increase. AMD’s third-quarter financial results indicate mixed performance across sectors, reporting revenue of $6.8 billion, an 18% increase year over year. However, a dramatic 69% drop in the gaming division and a 25% decline in the embedded sector raise questions about its overall health. In contrast, growth in client and data center segments at 29% and 122%, respectively, offers a more nuanced picture of AMD’s potential.

AMD faces stock decline despite data center growth potential

AMD’s significant growth in the data center segment is noteworthy, illustrated by a 122% rise. This expansion is driven by strategic partnerships with major tech companies like Microsoft and Meta Platforms, which have adopted AMD’s MI300 accelerators within their infrastructure. These moves mark AMD’s entry into a segment where it traditionally faced stiff competition from Nvidia. As AMD plans to roll out new GPUs through 2026, it aims to carve out a stronger foothold against Nvidia, whose dominance in the GPU market has hampered AMD’s growth.

Analysts suggest that the shift in market dynamics, particularly in data centers, may alter the competitive landscape. AMD’s increasing share of high-performance computing reflects a broader trend wherein companies seek diversified technology solutions rather than relying solely on established players. Future developments in AMD’s product offerings are anticipated to further challenge Nvidia’s position.

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Valuation metrics reveal potential undervaluation

The financial metrics associated with AMD indicate potential undervaluation in the current market. With a PEG ratio of 0.31, significantly lower than industry averages, AMD may represent an attractive investment opportunity. This suggests that the company is currently undervalued in light of its expected earnings growth. Additionally, the company’s forward price-to-earnings ratio aligns approximately with the S&P 500, implying a discrepancy in market perception of AMD’s growth potential.

Despite ongoing challenges, such as a steep decline in gaming revenue, AMD’s overarching growth prospects in the data center space suggest a longer-term bullish outlook. Market sentiment appears skeptical, but the metrics underscore that AMD has room for recovery and growth. Understanding these dynamics could be critical for investors considering AMD at its current price points.

Challenges in the gaming and embedded sectors

AMD’s performance in the gaming sector poses ongoing concerns, with the division experiencing a 69% drop in revenue year over year. This downturn reflects a broader uncertainty in consumer spending and market trends related to gaming. The embedded segment’s 25% decline compounds AMD’s challenges, necessitating a robust strategy to stabilize these areas. High volatility in these sectors could inhibit revenue growth, potentially impacting investor confidence further.

Nonetheless, AMD’s strategic focus on high-growth areas, particularly data centers, could mitigate risks associated with its weaker divisions. Sustained efforts to innovate and adapt to market demands are essential for capitalizing on emerging opportunities in technology sectors increasingly focused on energy efficiency and sustainable solutions. AMD’s commitment to innovation and partnerships will be pivotal as it navigates these challenges.

Current developments surrounding AMD illustrate a mixed narrative, with certain sectors performing well while others struggle. Despite the setbacks, the company’s emphasis on advancing its data center capabilities, aided by partnerships with industry leaders, establishes a foundation for potential recovery and growth.

AMD is leveraging its 122% growth in data center revenue to challenge Nvidia in AI and high-performance computing. Partnerships with Microsoft and Meta show AMD is serious about taking market share, positioning itself as a real competitor in a booming sector. If it continues this momentum, its data center business could redefine AMD’s future.

However, a 69% drop in gaming revenue is a clear red flag. AMD needs to stabilize this segment fast while doubling down on its data center gains. For investors, this is a big moment—AMD’s ability to execute in high-growth areas while addressing weak spots will determine if it rebounds or continues to slide.

Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

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AMD is set to release its RDNA 4 graphics cards early next year, facing significant challenges within an evolving GPU market. With Nvidia pursuing flagship dominance and Intel targeting budget-conscious gamers, AMD’s focus on midrange offerings may create conflicts.

AMD’s midrange GPU strategy faces tough market competition

AMD has not disclosed specific details about its upcoming RDNA 4 cards but has indicated a shift away from competing for flagship supremacy with Nvidia. The RX 9070 XT is rumored to lead AMD’s new initiative, expected to deliver performance comparable to Nvidia’s RTX 4070 Ti and RX 7900 GRE. According to leaked benchmarks, this card aims for a performance level typically found in GPUs priced around $600 to $700 in the current generation, with expectations that it may be priced lower than this range.

Rumors suggest that the RX 9070 XT could also approach the performance metrics of the RTX 4080. However, it appears that AMD is intentionally positioning this card below what would qualify as a next-gen flagship. This becomes critically apparent when considering the anticipated capabilities of Nvidia’s RTX 5090, which insiders allege could outperform the RTX 4090 by as much as 70%.

AMD’s focus on midrange graphics cards seems strategic amid rising flagship prices from Nvidia, which exceed $1,000, coupled with Intel’s offerings aimed squarely at the under-$300 segment. Yet, AMD’s approach places the company in a precarious position, caught between divergent pricing strategies.

When evaluating a new graphics card, context is essential. The RTX 4090 exemplifies this; while it demonstrates impressive speed metrics against its predecessors, it must also contend with its price point and value comparison to alternatives, such as the RTX 4080. Nvidia’s role as the market leader means that competing products from AMD or Intel will invariably be judged against their performance.

As new graphics cards from Nvidia and AMD are expected to coincide with the Consumer Electronics Show (CES) in January 2025, there remains ambiguity about how they will stack up against one another. Analysts are curious about Nvidia’s potential response to AMD’s proposed offerings, especially as Nvidia rolls out new high-end graphics cards that are likely to exceed $1,000, while AMD remains focused on midrange solutions.

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Many consumers could choose to wait for Nvidia’s complete lineup launch before making a choice.

The anticipated RX 9070 XT may face unique challenges from AMD’s own last-gen cards. For instance, if the RX 9070 XT is positioned at around $650, it could mean buyers receive performance similar to that of the RX 7900 XT, which is already priced competitively and may be available for less during sales. Furthermore, significant price erosion on last-generation offerings complicates AMD’s ability to establish a competitive pricing structure for the new RX 9070 XT.

Without clear delineation between the new and older models, AMD’s next GPU might find itself competing against itself. The RX 9070 XT could offer impressive performance diverging from existing models but is subject to potential scrutiny, as consumers might favor existing options, particularly if they are already discounted.

This situation creates a balancing act which presents risks for AMD. On one hand, the new card must be attractive enough to entice buyers away from last-generation products, which may continue to drop in price. On the other hand, AMD cannot excessively undercut its existing offerings, risking a reduction in overall product value and revenue.

Timing and pricing will be critical for AMD to capitalize on Nvidia’s potential stock depletion. If AMD can deliver RDNA 4 at competitive prices while maintaining supply stability, it could seize a significant share of the midrange market. Still, AMD’s challenge lies in striking the right balance between performance and affordability without undermining its existing lineup. The RX 9070 XT’s success will hinge on how well AMD communicates its value proposition to gamers and positions itself against Nvidia’s and Intel’s aggressive strategies in the budget and flagship categories.

Featured image credit: AMD

Advanced Micro Devices (AMD) stock jumped 5.7% amid bullish analyst coverage and anticipation of new product launches. Rosenblatt recently designated AMD as a top investment idea for the first half of 2025, citing an optimistic one-year price target of $250 per share. This represents a potential upside of about 100%. The firm’s analysts attribute the positive outlook to AMD’s growth in the central processing units (CPUs) and graphics processing units (GPUs) markets, especially with strong performance expected from its Epyc CPUs and upcoming M1350 and M1400 GPUs.

AMD shares rise 5.7% amid bullish forecasts and product launches

Despite a challenging start to 2024, where AMD’s shares fell around 15% year-to-date and hovered near a 52-week low, recent gains have caught the attention of investors looking for rebound opportunities. While Nvidia has dominated the artificial intelligence (AI) market with substantial stock increases this year, AMD’s data center segment shows explosive growth, albeit below some analysts’ expectations.

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Trading on Monday was buoyed by rumors surrounding AMD’s imminent launches, including its Ryzen 9 9950X3D and Ryzen 9 9900X3D CPUs, alongside RDNA 4 GPUs, particularly the RX 9070 XT. These advancements promise improvements ranging from higher clock speeds to enhanced AI processing capabilities, aimed at tackling various demanding applications including gaming and content creation. The Ryzen 9 9950X3D, for example, features a turbo boost capability reaching up to 5.7 GHz and operates efficiently at a 4 nm process, which supports better performance per watt with reduced heat output.

Technological advancements on the horizon

The upcoming RDNA 4 GPUs are highly anticipated within the tech community, promising significant enhancements in ray tracing for more realistic lighting and shadows. With clock speeds expected to peak at 3.0 GHz, these GPUs are designed to be power-efficient, making them suitable for long-duration use in gaming and intensive tasks. AMD’s shift to the RX 9000 series indicates a strategy to revitalize consumer interest and likely attract new investment based on tangible product innovation.

The excitement surrounding these product launches and the bullish analyst outlook portrays AMD as an attractive option for investors at this moment. While significant competitive risks remain—particularly with Nvidia leading GPU technology—AMD’s expanding share in both the CPU and GPU markets could foster substantial growth. The company’s successful launching of next-generation products aligned with the persistent demand for AI solutions may solidify its long-term position within the semiconductor space.

Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

Featured image credit: AMD

Chip maker AMD is set to lay off about 1,000 employees, constituting roughly 4% of its workforce, as part of its strategy to align resources with key growth areas, particularly in the competitive AI chip market. This announcement comes after a significant decline in its gaming division, which has witnessed a staggering 69% drop. In 2023, AMD reported having around 26,000 employees, and this latest move could potentially save the company $200 million.

AMD is set to lay off about 1,000 employees

An AMD spokesperson noted, “As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps that will unfortunately result in reducing our global workforce.” The company is positioning itself to better compete with rivals, particularly Nvidia, which remains the dominant player in the AI chip market with an impressive market share.

Despite the layoffs, AMD has been rolling out new products, including the Ryzen 7 9800X3D and the Ryzen 9 9900X, although projections indicate they will ship only about 220,000 chips this year. In comparison, Nvidia’s GPUs hold a whopping 88% market share, leaving AMD with just 12%. Nevertheless, AMD has made headway against Intel, increasing its desktop CPU shipments by 10 percentage points within a year.

Market dynamics: AMD’s challenges and opportunities

AMD’s struggles are further underscored by its performance in the gaming segment, which is anticipated to decline by 59% to $2.57 billion in revenue by the end of 2024. The company is not alone, though, as Intel, Dell, and Samsung have recently announced similar workforce reductions in an effort to strengthen their positions in the evolving AI landscape. With the AI market projected to grow significantly, AMD recognizes that streamlining its workforce is crucial to capitalize on emerging opportunities.

AMD’s recent layoffs come despite the company forecasting $5 billion in AI chip sales for 2024, a figure that represents about 20% of its total projected sales of $25.7 billion. While AMD hopes to tap into a total market for AI chips estimated at $500 billion by 2028, it must grapple with the reality that Nvidia is forecasted to amass $125.9 billion in revenue over the same period. This stark contrast illustrates the uphill battle AMD faces in capturing market share from its more established competitor.

The looming layoffs and AMD’s strategic shift reveal broader challenges facing the semiconductor industry, where companies are increasingly compelled to refine their focus amid fluctuating market dynamics. The recent news sheds light on the ongoing pressures faced by manufacturers as they strive to navigate a rapidly evolving technological landscape.

For now, AMD’s journey toward regaining competitive footing continues, as it seeks to adapt to market needs while providing support to those affected by the layoffs. AMD’s commitment to treating impacted employees with respect and assisting them through the transition speaks to a larger corporate responsibility that is often overlooked in the pursuit of profits.

Featured image credit: AMD

OpenAI, the company behind ChatGPT, is expanding its efforts to secure reliable and cost-effective computing power for its AI models. By developing custom silicon, OpenAI aims to reduce dependence on external suppliers like NVIDIA, whose GPUs dominate the AI chip market. According to Reuters OpenAI has partnered with Broadcom and secured manufacturing capacity with Taiwan Semiconductor Manufacturing Company (TSMC), while incorporating AMD chips into its Microsoft Azure setup.

OpenAI to build custom AI chips with Broadcom and TSMC

OpenAI’s journey towards developing its own AI chips started with assembling a team of about 20 people, including top engineers who previously worked on Google’s Tensor Processing Units (TPUs). This in-house chip team, led by experienced engineers like Thomas Norrie and Richard Ho, is working closely with Broadcom to design and produce custom silicon that will focus on inference workloads. The chips are expected to be manufactured by TSMC, the world’s largest semiconductor foundry, starting in 2026.

The goal behind developing in-house silicon is twofold: to secure a stable supply of high-performance chips and to manage escalating costs associated with AI workloads. While demand for training chips is currently higher, industry experts anticipate that the need for inference chips will surpass training chips as more AI applications reach the deployment stage. Broadcom’s expertise in helping fine-tune chip designs for mass production and providing components that optimize data movement makes it an ideal partner for this ambitious project.

OpenAI had previously considered building its own chip foundries but ultimately decided to abandon those plans due to the immense costs and time required. Instead, OpenAI is focusing on designing custom chips while relying on TSMC for manufacturing.

Incorporating AMD chips for diversification

Alongside its partnership with Broadcom, OpenAI is also incorporating AMD’s new MI300X chips into its Microsoft Azure setup. AMD introduced these chips last year as part of its data center expansion strategy, aiming to capture some of the market share currently held by NVIDIA. The inclusion of AMD chips will allow OpenAI to diversify its chip supply, reducing its dependence on a single supplier and helping to manage costs more effectively.

AMD’s MI300X chips are part of its push to compete with NVIDIA, which currently holds over 80% of the market share in AI hardware. The MI300X chips are designed to support AI workloads, particularly in inference and model training. By adding AMD chips into its infrastructure, OpenAI is hoping to alleviate some of the supply constraints it has faced with NVIDIA GPUs, which have been in high demand and subject to shortages.

This strategic move is also a response to rising compute costs, which have become a major challenge for OpenAI. The company has been dealing with high expenses for hardware, electricity, and cloud services, leading to projected losses of $5 billion this year. Reducing its reliance on a single supplier like NVIDIA, which has been increasing its prices, could help OpenAI better manage these costs and continue developing its AI models without significant delays or interruptions.

The road ahead

Despite the ambitious plan to develop custom chips, there are significant challenges ahead for OpenAI. Building an in-house silicon solution takes time and money, and the first custom-designed chips are not expected to be in production until 2026. This timeline puts OpenAI behind some of its larger competitors like Google, Microsoft, and Amazon, who have already made substantial progress in developing their own custom AI hardware.

The partnership with Broadcom and TSMC represents an important step forward, but it also highlights the difficulties faced by companies trying to break into the chip market. Manufacturing high-performance AI chips requires substantial expertise, advanced production facilities, and considerable investment. TSMC, as the manufacturing partner, will play a key role in determining the success of this venture. The timeline for chip production could still change, depending on factors like design complexity and manufacturing capacity.

Another challenge lies in talent acquisition. OpenAI is cautious about poaching talent from NVIDIA, as it wants to maintain a good relationship with the chipmaker, especially since it still relies heavily on NVIDIA for its current-generation AI models. NVIDIA’s Blackwell chips are expected to be crucial for upcoming AI projects, and maintaining a positive relationship is essential for OpenAI’s ongoing access to these cutting-edge GPUs.

Why OpenAI needs custom silicon

The main driver behind OpenAI’s custom chip initiative is cost. Training and deploying large AI models like GPT-4 require massive computing power, which translates to high infrastructure expenses. OpenAI’s annual compute costs are projected to be one of its largest expenses, with the company expecting a $5 billion loss this year despite generating $3.7 billion in revenue. By developing its own chips, OpenAI hopes to bring these costs under control, giving it a competitive edge in the crowded AI market.

Custom silicon also offers performance benefits. By tailoring chips specifically for the needs of AI inference, OpenAI can optimize performance, improve efficiency, and reduce latency. This is particularly important for delivering high-quality, real-time responses in products like ChatGPT. While NVIDIA’s GPUs are highly capable, custom-designed hardware can provide more targeted optimization, potentially leading to significant gains in performance and cost efficiency.

The approach of blending internal and external chip solutions provides OpenAI with greater flexibility in how it scales its infrastructure. By working with Broadcom on custom designs while also incorporating AMD and NVIDIA GPUs, OpenAI is positioning itself to better navigate the challenges of high demand and supply chain limitations. This diversified approach will help the company adapt to changing market conditions and ensure that it has the computing resources necessary to continue pushing the boundaries of AI.

Featured image credit: Andrew Neel/Unsplash

A recent leak has given us a detailed look at what to expect from AMD’s upcoming Ryzen 7 9800X3D processor. According to a marketing slide obtained by VideoCardz, the 9800X3D will feature an 8% performance boost in gaming compared to its predecessor, the Ryzen 7 7800X3D.

Set to launch officially on November 7th, this new processor has been generating considerable interest among enthusiasts, and the leaked information offers some insight into its expected capabilities, compatibility, and features.

Gaming performance and multi-threaded improvements

The Ryzen 7 9800X3D is positioned as a successor to the Ryzen 7 7800X3D, a CPU that is widely regarded as one of the top gaming processors available today. The leaked slide claims that the 9800X3D will provide an 8% boost in gaming performance over the 7800X3D. This gain may not be game-changing, but it’s notable given that the 7800X3D already ranks highly among gaming CPUs. The focus on incremental improvement aligns with AMD’s approach to refining the 3D V-Cache technology for increased efficiency and performance in gaming scenarios.

In addition to better gaming performance, the 9800X3D is expected to deliver a 15% improvement in multi-threaded workloads compared to the 7800X3D. This indicates that AMD aims to make this processor attractive not only to gamers but also to those using their systems for more demanding productivity tasks, such as video editing or 3D rendering. The boost in multi-threaded performance is a key metric, especially in a market where consumers expect their hardware to perform across a range of applications.

Next-generation 3D V-Cache and boost clock

The leaked marketing slide also reveals that the Ryzen 7 9800X3D will be equipped with a new generation of AMD’s 3D V-Cache technology. The processor will feature a 96MB L3 cache, with improvements made to enhance thermal efficiency. The improved thermal performance allows the CPU to achieve clock speeds of up to 5.2 GHz. This is a notable development, as maintaining higher clock speeds while managing heat has been a major challenge for high-performance CPUs.

While some enthusiasts were hoping for even higher clock speeds, it appears that 5.2 GHz is the boost clock limit for the 9800X3D. AMD’s decision to cap the boost clock at this level likely reflects a balance between maintaining stability and optimizing the processor for the best gaming and productivity performance without pushing the thermal envelope too far.

The introduction of the next-generation 3D V-Cache also highlights AMD’s commitment to pushing the boundaries of CPU performance in gaming. By increasing the L3 cache size and improving thermal management, AMD aims to minimize latency and ensure smoother frame rates in gaming scenarios. The 3D V-Cache is a significant part of what differentiates the X3D lineup from other Ryzen CPUs, as it allows the processor to handle larger amounts of data quickly, which is particularly useful in games that require a lot of memory bandwidth.

Compatibility and memory overclocking

Another key detail revealed in the leak is the compatibility of the Ryzen 7 9800X3D with existing AM5 motherboards. AMD confirms that the new processor will work with all AM5 motherboards, including the recently launched X870E/X870 series and the last-generation X670(E)/B650(E) series, as well as the A620 motherboards, provided they receive the necessary BIOS updates. However, it is worth noting that AMD did not explicitly mention support for the B650 series in the leaked slide, which might raise some questions among those planning an upgrade.

The 9800X3D will also support memory overclocking up to 8000 MT/s, a significant capability for those who want to push their systems to the limit. This level of memory overclocking is becoming increasingly important in gaming and other high-performance applications, where faster memory speeds can lead to better overall performance. Some early testing has already shown that the 9800X3D can exceed this 8000 MT/s figure, suggesting that there may be some additional headroom for users looking to experiment with their memory configurations.

No pricing details yet

One key piece of information that AMD has yet to confirm is the pricing for the Ryzen 7 9800X3D. With the official launch date just around the corner, consumers and industry analysts are eagerly awaiting details about how the new processor will be positioned in terms of cost. Given its performance improvements over the Ryzen 7 7800X3D, the 9800X3D is expected to come with a price premium, but how much more it will cost remains to be seen.

Pricing will be a crucial factor in determining whether the Ryzen 7 9800X3D will be able to compete effectively with both AMD’s existing lineup and Intel’s offerings. The 7800X3D has been popular among gamers and content creators due to its balance of performance and price, so AMD will need to be careful in pricing the 9800X3D to ensure it offers a compelling value proposition.

The role of real-time data in competitive gaming

The Ryzen 7 9800X3D represents an incremental upgrade over the 7800X3D rather than a revolutionary leap forward. The 8% boost in gaming performance and 15% improvement in multi-threaded workloads are valuable gains, but they may not be enough to convince current 7800X3D owners to upgrade. Instead, the 9800X3D seems targeted at those who are building new systems or upgrading from older hardware and want the latest advancements in CPU technology.

AMD’s focus on refining the 3D V-Cache and improving thermal performance reflects a strategy of gradual enhancement rather than radical change. By building on the strengths of the 7800X3D and addressing some of its limitations, such as thermal performance, AMD aims to offer a more polished product that appeals to gamers and productivity users alike.

Featured image credit: Kerem Gülen/Ideogram

At AMD’s Advancing AI event, CEO Lisa Su took the stage to announce a series of innovations aimed at AI customers. From the latest 5th generation EPYC processors to next-gen Instinct accelerators, AMD is doubling down on high-performance hardware for AI workloads. These new technologies promise to boost AI processing power and streamline workloads for enterprises and cloud computing.

AMD Advancing AI 2024 at a glance

Let’s break down the key announcements from the Advancing AI event.

5th Gen EPYC Processors: Unleashing the Power of Zen 5

Kicking off the event, Lisa Su introduced AMD’s 5th generation EPYC portfolio, built around the all-new Zen 5 core. “We designed Zen 5 to be the best in server workloads,” Su explained, highlighting its 177% increase in IPC over Zen 4. The new processor features up to 192 cores and 384 threads, pushing the limits of server performance.

One of the standout points was the flexibility these chips offer. Su noted, “We thought about it from the architectural standpoint—how do we build the industry’s broadest portfolio of CPUs that covers both cloud and enterprise workloads?” This balance of performance and versatility is aimed at handling everything from AI head nodes to demanding enterprise software.

AMD Turion chips: Scaling for the cloud and enterprise

The event also saw the introduction of AMD’s new Turion chips, specifically optimized for different types of workloads. Su revealed two key versions: a 128-core version designed for scale-up enterprise applications, and a 192-core version aimed at scale-out cloud computing. Both are built for maximum performance per core, crucial for enterprise workloads where software is often licensed per core.

“The 192-core version is really optimized for cloud,” Su explained, emphasizing that these chips will give cloud providers the compute density they need. AMD also compared their new EPYC chips to the competition, showing that 5th Gen EPYC delivers up to 2.7 times more performance than the leading alternatives.

AMD Instinct MI325X: An AI-focused GPU

Turning to AI acceleration, Su announced the AMD Instinct MI325X, the company’s latest AI-focused GPU. “We lead the industry with 256 gigabytes of ultra-fast HBM3E memory and six terabytes per second of bandwidth,” Su said. The MI325X is built to handle demanding AI tasks such as generative AI, boasting 20-40% better inference performance and latency improvements over previous models.

In addition to memory and performance boosts, AMD designed the MI325X with ease of deployment in mind. “We kept a common infrastructure,” Su mentioned, allowing for seamless integration with existing systems. This will make it easier for AI customers to adopt the technology without overhauling their platforms.

AMD Instinct MI350 series

The event also provided a glimpse into AMD’s future with the MI350 series. Scheduled for launch in the second half of 2025, the MI350 introduces the new CDNA 4 architecture and offers a staggering 288 GB of HBM3E memory. According to Su, CDNA 4 will bring a “35 times generational increase in AI performance compared to CDNA 3.”

This new architecture is designed to handle larger AI models with greater efficiency, and its backward compatibility with previous Instinct models ensures a smooth transition for customers.

ROCm 6.2: Better performance for AI workloads

AMD’s commitment to optimizing AI performance extends beyond hardware, with Su announcing ROCm 6.2, the latest update to AMD’s AI software stack. The new release delivers 2.4 times the performance for key AI inference workloads and 1.8 times better performance for AI training tasks. These improvements come from advancements in algorithms, graph optimizations, and improved compute libraries.

“Our latest release focuses on maximizing performance across both proprietary and public models,” Su explained, signaling AMD’s efforts to remain competitive in the AI software space as well.

Image credits: Kerem Gülen/Ideogram 

In a move that encourages Nevada’s growing tech scene, AI cloud platform TensorWave announced today it has secured a statement inducing $43 million in SAFE funding. The largest of its kind for a Nevada-based startup, the funding highlights the increasing attractiveness of Nevada as a hub for tech innovation, with the state’s favorable business environment and growing talent pool drawing significant attention from investors and entrepreneurs alike, supporting strong growth in sectors like cybersecurity, aerospace, and logistics technology

TensorWave aims to address a typical bottleneck: access to powerful and affordable GPU resources. The company offers a compelling alternative to the existing options currently available, leveraging AMD Instinct Series GPUs rather than siding with NVIDIA, to deliver unparalleled scalability and performance – a strategy it recently discussed with Dataconomy. 

By eliminating the wait times and complexities associated with on-premise server management, TensorWave aims to democratize AI compute for startups, enterprises, and researchers alike.

“We are thrilled to have the support of such esteemed investors, partners, and the State of Nevada as we embark on this next phase of growth,” said Darrick Horton, CEO at TensorWave. “This funding allows us to significantly scale our team and deploy thousands of AMD Instinct AI accelerators to empower the startups and enterprises shaping our technological future.”

The funding, led by Nexus VP, with significant contributions from Maverick Capital, Translink Capital, Javelin Venture Partners, StartupNV, and AMD Ventures, will fuel TensorWave’s expansion plans. The company plans to bolster its core team, significantly increase capacity at its primary data center with the addition of thousands of AMD Instinct MI300X GPUs, and prepare for the integration of the next-generation MI325X GPUs. Furthermore, TensorWave is gearing up to launch Manifest, an inference platform designed for handling large context windows with minimal latency, enabling advanced document analysis and accelerated reasoning.

“AMD Ventures shares TensorWave’s vision to transform AI compute infrastructure,” said Mathew Hein, Senior Vice President, Chief Strategy Officer and Corporate Development at AMD. “Their deployment of the AMD Instinct MI300X and ability to offer public instances to AI customers and developers positions them as an early competitor in the AI space, and we are excited to support their growth through this latest round of funding.”

TensorWave’s strategic deployment of AMD GPUs positions the company at the forefront of the rapidly expanding AI market, which is projected to reach a staggering $1.81 trillion by 2030, according to Grand View Research. Investors have recognized the company’s potential to become a key player in this burgeoning sector.

“TensorWave has impressed with their mission, vision, and rapid execution. We’re thrilled to support this dynamic startup, which is poised to lead AI cloud computing with AMD GPUs,” says Brendan Walsh, Venture Partner at Translink Capital. “Their deep expertise in both the physical plant and software elements of cloud compute and artificial intelligence, along with their commitment to fostering a competitive, open-source future for AI, makes them an exciting company to watch as they continue to scale.”

With its focus on accessibility, performance, and innovation, TensorWave is set to make waves in the AI industry. The company’s commitment to providing a robust and competitive cloud platform powered by AMD’s cutting-edge GPU technology has the potential to reshape the AI landscape and accelerate the development of groundbreaking applications across various sectors.

The semiconductor industry is witnessing a fascinating rivalry as Advanced Micro Devices (AMD) challenges NVIDIA’s dominance in the AI accelerator market. With its Instinct MI300X, AMD is poised to disrupt the status quo, offering a cost-effective and powerful alternative to NVIDIA’s H100. The surge in demand for AI chips, driven by the explosive growth in AI adoption and data center expansion, further intensifies this competition.

In the fast-paced arena of AI chip technology, AMD is making notable progress in challenging NVIDIA’s dominance. While NVIDIA currently commands the lion’s share of the market, estimated at over 80%, AMD is steadily gaining momentum, particularly in the data center sector. This surge is fueled by robust demand for their MI300X AI chip, with projected sales reaching an impressive $4 billion, accounting for roughly 15% of AMD’s anticipated revenue.

When it comes to performance, NVIDIA’s H100 chips remain widely acknowledged for their prowess in AI workloads, especially in the realm of training. However, AMD’s MI300X is proving its mettle in specific AI tasks, particularly inference, where some assert it even outperforms NVIDIA’s flagship H100.

In terms of industry partnerships and adoption, NVIDIA boasts well-established collaborations with major cloud providers and enjoys broad acceptance across diverse sectors. On the other hand, AMD is actively forging partnerships, such as its alliance with TensorWave, to broaden its reach and refine its technology for AI-centric tasks.

The dynamic interplay between these two giants promises an exciting future for the AI chip market. I spoke with Darrick Horton, CEO at TensorWave, to understand why it has put all its AI eggs in the AMD basket.

AMD’s Instinct MI300X: A Game-Changer?

The MI300X boasts a larger memory capacity than the H100, making it advantageous for specific AI tasks, especially those involving large language models. While the H100 generally offers greater raw compute power, the MI300X shows promise in inference tasks and larger batch sizes. 

Although exact prices are not public, the MI300X is reportedly cheaper, potentially offering a better price-to-performance ratio. However, NVIDIA’s CUDA platform enjoys wider adoption and a more mature software ecosystem.

“One of the standout features of the MI300X is its superior memory architecture,” Horton told me. “With up to 192GB of unified HBM3 memory, the MI300X significantly outperforms the H100, allowing for the seamless handling of larger models and datasets directly on the accelerator. This reduces the need for off-chip memory accesses, which can be a bottleneck in AI workloads, leading to improved performance, caching abilities, and lower latency.”

Other considerations that led TensorWave to partner with AMD include energy efficiency and AMD’s software ecosystem.

“The MI300X is designed with energy efficiency in mind, delivering outstanding performance per watt,” Horton said. “This is particularly important as AI workloads scale, enabling enterprises to achieve high performance without escalating energy costs. This efficiency is a critical factor in large-scale deployments, where operational costs can be a significant concern. AMD’s ROCm (Radeon Open Compute) platform continues to mature and offers robust support for AI and HPC workloads. The open-source nature of ROCm provides developers with flexibility and the ability to optimize their applications for the MI300X, something that’s increasingly important as AI models become more sophisticated.”

The MI300X’s hybrid architecture combines CPU and GPU capabilities, which can optimize performance across various workloads, and efficiently scale across multiple accelerators. All of this paints a picture of a compelling alternative to NVIDIA.

Of course, AMD and NVIDIA are taking highly different approaches to building large-scale GPU systems. AMD favors the open standard of PCIe 5.0, offering broader compatibility and potentially lower costs, while NVIDIA relies on its high-bandwidth NVLink interconnect for improved performance in certain scenarios but with potential scalability limitations and higher costs.

A Mission to Democratize AI Access

TensorWave’s pricing model seems aimed at democratizing access to high-performance AI infrastructure, and the reported lower cost of leasing AMD GPUs through the platform can contribute to making advanced AI technologies more accessible to a wider range of organizations.

“When it comes to GPU procurement, it’s far from a simple 1-click checkout,” Horton said. “The process is often delayed by production backlogs, making shipment timing unpredictable. Plus, the upfront costs can be prohibitive. We’ve already built out our data centers with thousands of MI300X GPUs, ready to deploy when you are. But let’s say you manage to get your hardware. Now, you’re faced with the challenge of building, managing, and maintaining that hardware and the entire data center infrastructure. This is a time-consuming and costly process that not everyone is equipped to handle. With our cloud service, those worries disappear.”

While NVIDIA currently holds a dominant position, AMD’s Instinct MI300X and TensorWave’s innovative approach are poised to disrupt the AI accelerator market. 

“NVIDIA has been the dominant force in the AI accelerator market, but we believe it’s time for that to change,” Horton said. “We’re all about giving optionality to the market. We want builders to break free from vendor lock-in and stop being dependent on non-open-source tools where they’re at the mercy of the provider. We believe in choice. We believe in open-source optionality. We believe in democratizing compute. These principles were central when we built and focused our cloud around AMD MI300X accelerators.”

TensorWave believes this is important as more SMBs and big businesses start to leverage AI tools in the same way corporations already have.

“Think about accounting firms, legal offices, and research institutions,” Horton said. “They have vast amounts of historical data. If they can build AI tools that learn from these datasets, the potential for positive business outcomes is enormous. However, to achieve this, you’re going to need to process large datasets (250,000+ tokens), which will require substantial memory and performance from the hardware. And this isn’t just theoretical—enterprises are actively working on long-context solutions right now.”

A Bold Bet in a High Stakes Game

TensorWave also believes AMD will become the new standard as LLMs reach new heights, which is a big driver behind it putting all its chips on AMD (blackjack metaphor intended).

“As AI models continue to grow larger and more memory-intensive, NVIDIA’s solutions struggle to compete with the MI300X in terms of price-to-performance. Take Meta’s Llama 3.1 405B model, for example. That model can run on less than one full MI300X node (8 GPUs), whereas it requires approximately two nodes with the H100B. We’re betting big that the AI community is ready for something better—faster, more cost-effective, open-source, and readily available. 

Doubling down on its investment in AMD, TensorWave is looking towards the future, developing new capabilities to democratize further access to compute power.

“We’re developing scalable caching mechanisms that dramatically enhance the efficiency of handling long contexts,” Horton said. “This allows users to interact with larger chats and documents with significantly reduced latencies, providing smoother and more responsive experiences even in the most demanding AI applications.”

Currently in beta, TensorWave is projecting to roll this out to its users in Q4 2024.

The MI300X’s technical advantages, combined with TensorWave’s focus on democratization and cost-effectiveness, present a compelling alternative for businesses seeking high-performance AI solutions.

Ante Up for a Brighter Future

The “see, raise, and call” between AMD and NVIDIA will undoubtedly drive further advancements in GPU technology and AI applications across the entire industry. As the demand for AI continues to grow, both companies will play crucial roles in shaping the future of this transformative technology.

Whether AMD can ultimately surpass NVIDIA remains to be seen. However, their presence in the market fosters healthy competition, innovation, and ultimately benefits the entire AI ecosystem. The battle for AI supremacy is far from over, and the world watches with anticipation as these two tech titans continue to push the boundaries of what’s possible.

AMD’s Zen 5 generation debuts with the Ryzen AI 300 series laptops, introducing the Ryzen AI 9 HX 370 chip as its flagship SoC, ahead of the desktop processors. This introduction in the Asus Zenbook S16 marks the first use of the Zen 5 architecture in a consumer device, amidst a brief postponement of the Ryzen 900 series.

Welcome aboard Ryzen AI 9 HX 370

The Ryzen AI 9 HX 370 is designed to deliver enhanced computational power and efficiency. This chip is engineered to optimize performance-per-Watt, making it an attractive solution for users seeking a blend of power and energy efficiency in their computing tasks. The SoC’s capabilities are anticipated to suit a wide range of applications from standard laptop workloads to more demanding scenarios in thin client, edge, and IoT devices.

As the newest member of the AMD processor lineup, the Ryzen AI 9 HX 370 sets preliminary expectations for the performance potential of the upcoming Ryzen 9000 series and EPYC Turin processors. This early introduction through the Asus Zenbook S16 provides a glimpse into the advanced engineering and performance enhancements that AMD has incorporated into the Zen 5 architecture.

• Architecture: Part of the “Strix Point” lineup
• Core configuration: 12 cores (4 Zen 5 cores and 8 Zen 5C cores)
• Thread count: 24 threads
• Base clock speed: 2 GHz
• Max boost clock speed: Up to 5.1 GHz
• NPU (Neural Processing Unit): XDNA 2, capable of 50 TOPS, surpassing similar offerings by competitors
• Primary use: First seen in the Asus Zenbook S16, aiming for high productivity performance
• AI capabilities: Supports applications like Amuse 2.0 with features such as image generation and paint-to-image, optimized for local AI processing
• Benchmarking performance (as per Tomshardware):
  • Geekbench 6 Scores: Single-core: 2,765, Multi-core: 13,282
  • File transfer rate: 908.45 MBps for a 25GB file
  • Video transcoding (Handbrake): Transcoded a 4K video to 1080p in 5 minutes and 9 seconds
  • Cinebench 2024 (10 runs): Started at 821.18 points, varied between high 700’s and a peak of 844.42 points
• Operational frequencies during testing:
  • Zen 5 cores: Averaged 2.67 GHz
  • Zen 5C cores: Reached up to 1.9 GHz
• Thermal performance:
  • Average CPU temperature: 73.44 Celsius during intensive testing

ASUS Zenbook S16 is the first notebook to sport Ryzen AI 9 HX 370

ASUS Zenbook S16, equipped with the Ryzen AI 9 HX 370 SoC  looks very good in Linux performance evaluations. This model is part of an initial offering alongside a nearly identical unit powered by the Ryzen AI 9 365 SoC, setting the stage for upcoming comparative reviews and detailed performance analyses.

ASUS Zenbook S16 specs and price

The ASUS Zenbook S16, featuring the Ryzen AI 9 HX 370, represents a significant step forward in the integration of AMD’s Zen 5 CPU architecture into mainstream laptop offerings. Initial tests focus on compatibility with recent software environments, including the necessity for a Linux kernel version 6.10+ and Mesa 24.2+ to fully support the RDNA3.5 integrated graphics. This setup is crucial for optimizing the performance of the integrated GPU, as earlier versions may not provide accelerated graphics capabilities.

Challenges such as kernel errors and system instability were initially observed during the benchmarking process. However, interventions by AMD Linux engineers, including the provision of updated PSP and DMCUB firmware not yet mainstreamed, have led to a stabilization of the system on the tested configurations. Users can anticipate these updates to become publicly available, ensuring enhanced stability and performance.

As the Zenbook S16 continues to undergo rigorous testing, more insights are expected to surface regarding the performance nuances of the Ryzen AI 9 HX 370 SoC under various workload scenarios. This early examination provides a promising glimpse into the potential of AMD’s latest chip technology, particularly in terms of its application in Linux environments. Stay tuned for further developments and detailed performance results in future updates.

Best AI chip companies: Do not sleep on these Nvidia competitors

The integration of the XDNA Linux driver into the mainline Linux kernel is currently underway, targeting an eventual mainstream release. This development is particularly significant for users of the Ryzen AI NPU stack, with expectations set for broad availability in the Ubuntu distributions by late 2024 or early spring 2025. However, the current benchmarks are predominantly concentrated on the CPU capabilities, providing insights into the immediate performance metrics available.

An issue identified in the preliminary testing phase involved the RAPL/PowerCap CPU package, which did not report power information correctly under Linux 6.10 due to an oversight in updating the RAPL driver for Family 1Ah processors. A corrective patch has been proposed to address this, which should facilitate accurate CPU power reporting once it is accepted into the kernel and back-ported to stable series.

Another key area of focus is the handling of heterogeneous core topology. AMD engineers are actively developing AMD P-State patches to optimize the process allocation between the standard Zen 5 cores and the enhanced Zen 5C cores. While these patches have not yet been incorporated into the mainline Linux kernel, they are critical for improving system performance and efficiency. The timing for these updates is still uncertain, as they missed the Linux 6.11 merge window and are now anticipated for consideration in the Linux 6.12 cycle, with potential availability by the end of 2024.

The Ryzen AI 9 HX 370 SoC, featured in the ASUS Zenbook, includes a mix of four Zen 5 cores and eight Zen 5C cores, presenting a unique configuration that stands to benefit significantly from these ongoing developments in Linux kernel support. As these updates continue to be refined and deployed, users can expect enhanced performance and stability from their devices running the latest AMD technologies.

Featured image credit: ASUS

At the recent Reuters’ Momentum AI conference in San Jose, California, Ramine Roane, AMD’s corporate vice president of data center, cloud, and AI, unveiled the company’s strategic pivot towards an open-source model to tackle the dominance of NVIDIA in the AI chip market, reports Business Insider. This shift comes as the industry grapples with a severe shortage of graphics processing units (GPUs), which are crucial for video gaming and AI development.

“The problem is vendor lock-in”

AMD and NVIDIA have been longstanding competitors in the production of GPUs. These chips are essential for handling complex computations required in AI and gaming. Despite AMD’s efforts, NVIDIA continues to hold a significant lead, controlling over 70% of the AI chips market, with major clients like Meta, Google, Amazon, and OpenAI, as per estimates by Mizuho Securities.

The surge in demand for generative AI has only intensified the need for more powerful chips, exacerbating the existing supply constraints. According to Roane, AMD is pushing its production capacities to the limit. “We are sending all the GPUs we can make right now,” Roane stated, highlighting the critical shortage within the industry.

A key issue Roane pointed out is the problem of ‘vendor lock-in,’ particularly with NVIDIA’s proprietary CUDA computing platform. Introduced in 2006, CUDA allows developers to create applications specifically for NVIDIA’s GPUs, which has not only cemented NVIDIA’s market dominance but also stifled competition due to its incompatibility with other GPUs.

AMD acquires Silo AI for $665 million

Roane criticized this closed ecosystem, noting that it restricts innovation and competition. He expressed AMD’s commitment to an open-source approach, aiming to provide a more flexible and developer-friendly alternative. This strategy could potentially enable easier access for developers across different hardware platforms, fostering greater innovation and reducing dependence on a single vendor.

As AMD champions this open-source initiative, it poses a direct challenge to NVIDIA’s entrenched position in the market. By advocating for open standards and interoperability, AMD hopes to attract a broader base of developers and industries, potentially reshaping the competitive landscape of the AI chip industry.

Featured image credit: Timothy Dykes/Unsplash

Advanced Micro Devices (AMD) announced its definitive agreement to acquire Silo AI, a leading AI startup based in Helsinki, Finland. The acquisition, valued at approximately $665 million in cash, represents a strategic move by AMD to strengthen its position in the competitive artificial intelligence (AI) market, particularly in AI chip capabilities.

About Silo AI

Silo AI is recognized for its expertise in developing end-to-end AI solutions tailored for integration into various industries’ products and services. The company’s client portfolio includes prominent names like Philips, Rolls-Royce, and Unilever, reflecting its track record in delivering advanced AI-driven innovations across Europe and North America.

Strategic rationale

AMD’s acquisition of Silo AI is driven by several strategic imperatives:

• Enhancing AI development: By integrating Silo AI’s capabilities, AMD aims to enhance its ability to develop and deploy AI models powered by its own chips. This move is crucial in enabling AMD to compete more effectively against industry leaders like Nvidia in the AI chip market.
• Expanding market reach: Silo AI’s established presence in Europe and North America provides AMD with a robust foundation to expand its market reach and customer base in these regions. This strategic expansion aligns with AMD’s broader goal of scaling its AI solutions globally.
• Technology integration: The acquisition will facilitate the integration of Silo AI’s technologies and talent into AMD’s AI ecosystem. This integration is expected to accelerate the development of AI-driven solutions across cloud computing, embedded systems, and endpoint devices.
• Innovation and partnership: AMD intends to leverage Silo AI’s expertise to drive innovation in AI technologies and foster deeper partnerships within the global AI community. This collaborative approach is aimed at advancing AI adoption across various industries.

Peter Sarlin, CEO, and co-founder of Silo AI will continue to lead the unit within AMD’s Artificial Intelligence Group, ensuring continuity and leveraging Silo AI’s established expertise in AI innovation. The acquisition is expected to close in the second half of 2024, pending regulatory approvals and customary closing conditions.

Financial and operational impact

While the financial impact of the acquisition on AMD’s immediate performance remains undisclosed, AMD Senior Vice President of AI, Vamsi Boppana, highlighted that the deal unlocks significant growth opportunities for the company moving forward. This strategic acquisition underscores AMD’s commitment to advancing its AI strategy and reinforcing its position as a leader in AI computing.

Featured image credit: Silo AI

AMD data breach 2024 has sent shockwaves through the tech industry, as reports surfaced that the chipmaker’s internal network had been compromised. The breach, allegedly perpetrated by a notorious cybercriminal group, has raised concerns about the theft of sensitive data, including details of future products and employee information.

Intelbroker claims AMD data breach 2024

The AMD data breach 2024 came to light when Intelbroker, a known cybercriminal organization, claimed to possess stolen AMD data. The alleged breach occurred in June 2024 and reportedly compromised a vast array of sensitive information, including details of future AMD products, customer and employee databases, financial records, and even source code.

Intelbroker has a history of high-profile cyber intrusions, having previously targeted Los Angeles International Airport and U.S. federal agencies. Their motives seem to range from financial gain through the sale of stolen data to potential geopolitical agendas aimed at disrupting critical infrastructure.

What was compromised in the AMD hack 2024?

The AMD hack 2024 has potentially exposed a treasure trove of sensitive data. The compromised information allegedly includes technical specifications of upcoming AMD products, internal communications, financial records, and comprehensive employee details. This could not only jeopardize AMD’s competitive edge but also put its employees at risk of identity theft and other cybercrimes.

Intelbroker has a history of high-profile cyber intrusions, having previously targeted Los Angeles International Airport and U.S. federal agencies. Their motives seem to range from financial gain through the sale of stolen data to potential geopolitical agendas aimed at disrupting critical infrastructure.

In the case of the AMD data breach 2024, Intelbroker has explicitly demanded payment in Monero (XMR) cryptocurrency in exchange for the stolen data.

Sensitive data offered in exchange for crypto

In a post on Breach Forums, Intelbroker outlined the extent of the data breach, claiming to have accessed various types of information, including ROMs, firmware, source code, property files, and databases containing employee and customer details. Additionally, the hacker asserted having obtained financial information, future AMD product plans, and technical specification sheets.

The alleged employee database breach includes sensitive personal information such as user IDs, job functions, email addresses, employment status, names, and business phone numbers. Intelbroker specified that “Only XMR”, the Monero cryptocurrency, will be accepted as the mode of payment and has asked members of the forum to quote prices. Additionally, the BreachForum moderator mentioned that “Middlemen” will be allowed to broker a deal for the purchase of data.

This demand for payment in cryptocurrency is not new for Intelbroker. In a previous high-profile breach, the threat actor made similar demands in return for sharing hacked classified, law enforcement data from one of Europol’s web platforms.

Response to AMD data breach 2024

AMD has acknowledged the claims of a data breach and is working with law enforcement and a third-party hosting partner to investigate the matter. The company’s statement indicates that it is aware of the cybercriminal organization’s claims and is actively investigating the significance of the data that may have been stolen.

This is not the first time AMD has faced cybersecurity challenges. In 2022, the company was targeted by the RansomHouse hacking group, which also claimed to have extracted data from AMD’s networks. That incident led to an extensive investigation and a strengthening of AMD’s security measures.

Repercussions

The AMD data breach 2024 could have far-reaching consequences. The potential leak of future product details could harm AMD’s competitive position in the market, while the exposure of employee information could lead to various forms of cybercrime. The incident also raises broader concerns about the vulnerability of tech companies to cyber attacks and the need for robust cybersecurity measures.

As technology continues to advance, so do the tactics of cybercriminals. Companies like AMD must remain vigilant and invest in robust cybersecurity measures to protect their sensitive data and maintain the trust of their customers and employees. Although they do not seem to be related, this breach and the CDK breach went down in history as another of the cyber attacks of June 2024.

Featured image credit: Timothy Dykes/Unsplash

At Computex 2024, AMD unveiled a new chapter in laptop processors with its Ryzen AI chips, 300 Series to be particular, designed specifically for generative AI tasks. This move is a strategic shift for AMD, as it rebrands its top-tier Ryzen 9 chips under a new moniker.

The Ryzen AI chips, together with the 300 Series, retain the familiar “HX” suffix, but with a twist: It no longer indicates power consumption but rather signifies the top-performing Ryzen AI chips, as explained in their blog post.

See AMD’s take on Computex 2024 below.

A new chapter opens with Ryzen AI chips

The Ryzen AI 300 Series introduces a significant change in AMD’s naming conventions for laptop processors. The “HX” suffix, previously used to indicate power draw, now serves as a marker for the most powerful chip within the Ryzen AI 300 lineup. This alteration reflects AMD’s dedication to generative AI workloads, emphasizing the specialized nature of these processors.

Beyond a mere name change, the Ryzen AI 300 Series represents a technological advancement. These chips are engineered to excel in tasks that demand substantial AI capabilities, such as image and video processing, natural language understanding, and other AI-intensive applications. This positions AMD as a strong competitor in the dynamic and rapidly evolving arena of AI-powered laptops.

A closer look at the new Ryzen AI chips

The Ryzen AI 300 Series chips are built on AMD’s new “Zen 5” architecture, designed to deliver enhanced performance and efficiency. Two specific chips have been announced within the series:

Ryzen AI 9 370HX: This top-tier chip boasts 12 CPU cores (4 high-performance Zen 5 cores and 8 efficiency-focused Zen 5c cores) with 24 threads, providing ample power for demanding tasks. It features AMD Radeon 890M graphics with 16 compute units, ensuring smooth visuals and gaming performance. Notably, it includes the AMD XDNA 2 AI engine, delivering 50 TOPS of AI processing power, significantly exceeding the requirements for AI tasks like Microsoft’s Copilot+.

Ryzen AI 9 365HX: This chip also features the Zen 5 architecture with 10 CPU cores (4 high-performance Zen 5 cores and 6 efficiency-focused Zen 5c cores) and 20 threads. It comes equipped with AMD Radeon 880M graphics with 12 compute units and the same powerful XDNA 2 AI engine found in the Ryzen AI 9 370HX.

Both chips feature a dedicated AI engine based on the new AMD XDNA 2 architecture. This enhances productivity and creativity by efficiently handling local AI workloads, generating content, and automating workflows, all while maintaining exceptional power efficiency. They also both offer new AMD RDNA 3.5 graphics architecture, ensuring smooth frame rates and high-quality visuals for gaming and other graphics-intensive tasks.

And yes, they both feature NPUs although they are found to be not necessary for the new Windows Recall feature.

Ryzen AI 300 Series’ deliberate strategy for the AI market

AMD’s decision to launch the Ryzen AI 300 Series is a strategic move within the competitive AI landscape. By explicitly targeting generative AI workloads, AMD is aligning itself with the increasing demand for laptops equipped to handle AI tasks. This approach mirrors a broader industry trend, as AI integration into everyday computing continues to expand.

The rebranding of top-tier Ryzen 9 chips as Ryzen AI 300 Series processors also streamlines AMD’s product portfolio. It establishes a clear differentiation between processors intended for general computing and those optimized for AI applications. This distinction benefits consumers by making it easier to select the appropriate processor for their individual needs.

MI325X to rival H200

While the Ryzen AI 300 Series garnered significant attention at Computex, AMD also introduced another AI-focused product: the MI325X. This 288GB AI accelerator is designed to rival Nvidia’s H200, showcasing AMD’s commitment to expanding its presence in the AI accelerator market.

The MI325X highlights AMD’s ambition to challenge Nvidia’s leading position in this market segment. By providing a competitive alternative, AMD aims to foster innovation and offer consumers a wider range of choices. The performance and features of the MI325X are poised to undergo close examination by industry experts.

The New AMD Instinct MI325X accelerator is expected to be available in Q4 2024.

AMD’s path forward in AI

The unveiling of the Ryzen AI chips, 300 Series and the MI325X, at Computex 2024 marks a significant moment for AMD. These new products underscore the company’s dedication to innovation and its determination to compete in the AI arena.

While the full extent of the impact of these advancements remains to be seen, one thing is certain: AMD is fully invested in AI.

The Ryzen AI chips 300 Series and the MI325X are set to play a crucial role in shaping the future of AI laptops, and AMD is well-prepared to lead the way. The journey is ongoing, and the outlook appears promising for both AMD and the broader landscape of AI-powered computing.

Featured image credit: AMD/YouTube

• China has enacted new rules mandating the removal of U.S. processors from its government computers and servers, effectively banning Intel and AMD chips.
• Amidst ongoing technological tensions with the U.S., China is bolstering its semiconductor industry to lessen its dependence on foreign tech.
• U.S. sanctions and export controls have not only targeted Chinese firms like Huawei and SMIC, preventing them from accessing vital semiconductor manufacturing equipment, but have also affected U.S. companies.

China has introduced new regulations requiring the removal of U.S. processors from government-operated computers and servers, thereby excluding chips manufactured by Intel and AMD, according to a report by the Financial Times.

These purchasing standards, which were disclosed on December 26, are currently in effect and extend their influence to Microsoft’s Windows operating system and database software from international sources, with a preference for Chinese-made alternatives, as indicated in the report. Authorities above the township level are mandated to acquire processors and operating systems deemed “safe and reliable” as per the Financial Times.

Which chips China will use

AMD and Intel have not yet publicly commented on this significant development. This occurs while China is enhancing its own semiconductor production, aiming to diminish its dependence on overseas technology.

In December, the China Information Technology Security Evaluation Center unveiled its premier compilation of endorsed processors and operating systems, categorizing them as secure. This selection exclusively comprised entities from China, including 18 processors among which Huawei and the government-endorsed entity Phytium were highlighted.

These firms find themselves on the export restriction list maintained by Washington. The architecture of the chips produced by these Chinese entities incorporates Intel’s x86, Arm, and locally developed technologies. Meanwhile, the basis for their operating systems is rooted in the open-source framework of Linux software.

Semiconductors, essential parts in various gadgets from mobile phones to healthcare devices, are pivotal in the tech conflict between the U.S. and China. The U.S. has enforced export controls to limit Beijing’s access to crucial semiconductor machinery and technology. In October 2022, Washington enacted regulations designed to limit China’s capacity to acquire or produce sophisticated semiconductor chips, due to worries over their potential military application by China.

In October 2023, the U.S. introduced further regulations to stop the American chip design company Nvidia from exporting high-end AI chips to China. Beginning in 2019, Chinese technology firms, including Huawei and SMIC, China’s leading semiconductor manufacturer, have faced U.S. sanctions.

In September 2022, NVIDIA encountered a comparable challenge when the U.S. tightened controls on AI chip exports to China. U.S. authorities instructed NVIDIA to cease exports of its two leading AI chips, used for tasks including image recognition, to China. This directive threatened to severely impact the capabilities of Chinese companies to conduct advanced AI operations and could also detrimentally affect NVIDIA’s operations within the nation.

These sanctions are designed to limit their access to cutting-edge technology. Specifically, SMIC has been barred from acquiring extreme ultraviolet lithography machines, which are essential for producing sophisticated chips, from ASML. The technological sanctions led by the U.S. have inadvertently increased sales for China’s local semiconductor equipment producers.

Image credits: Kerem Gülen/Midjourney

• Nvidia said on Wednesday that US officials had warned it to cease shipping two key AI chips to China for artificial intelligence work, a move that may impair Chinese enterprises’ capacity to execute advanced work such as image recognition and undermine Nvidia’s operations in the nation.
• After hours, Nvidia’s shares fell 6.6% in value.
• According to the firm, the ban, which affects its A100 and H100 chips designed to expedite machine learning processes, may hamper the completion of the H100, the company’s flagship chip announced this year.
• Former President Donald Trump’s administration restricted suppliers from supplying US-developed semiconductors to telecom giant Huawei without a special license in 2020. Without American processors from companies like Nvidia and AMD, Chinese firms cannot do current computer tasks like image and speech recognition at a fair cost.
• Nvidia indicated that it had booked $400 million in sales to China of the afflicted chips this quarter, which may be lost if firms do not acquire other Nvidia goods.

Nvidia Corp, a chip designer, said on Wednesday that U.S. officials had told it to stop exporting two top AI chips for artificial intelligence work to China, a move that could cripple Chinese firms’ ability to perform advanced work such as image recognition and harm Nvidia’s business in the country, Reuters reports.

AI chip export ban impacts both Nvidia and AMD

The statement marks a significant increase in the United States’ crackdown on China’s technical capabilities as tensions rise over the destiny of Taiwan, where AI chips for Nvidia and nearly every other major semiconductor business are built.

Nvidia’s stock dropped 6.6% after hours. The embargo, which affects its A100 and H100 chips meant to accelerate machine learning operations, might impede the completion of the H100, the business’s flagship AI chip launched this year, according to the company.

Advanced Micro Devices, Inc. (AMD) shares declined 3.7% after hours. According to an AMD spokeswoman, the company has received new licensing requirements to prevent its MI250 artificial intelligence processors from being transported to China. Still, the company believes its MI100 chips will not be affected. AMD stated that it does not expect the new restrictions to impact its operations significantly.

According to Nvidia, US officials informed the company that the new regulation “will address the risk that products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China.” The US Department of Commerce would not explain what additional criteria it has established for AI chips that cannot be delivered to China. Still, it evaluated its China-related rules and procedures to “keep advanced technologies out of the wrong hands.”

A spokesperson stated to Reuters, “While we are not in a position to outline specific policy changes at this time, we are taking a comprehensive approach to implement additional actions related to technologies, end-uses, and end-users to protect U.S. national security and foreign policy interests.”

On Thursday, China’s foreign ministry accused the US of aiming to place a “tech blockade” on the country, while its commerce ministry warned such steps would jeopardize the integrity of global supply chains. Commerce ministry spokesperson Shu Jieting said at a news conference that “The U.S. continues to abuse export control measures to restrict exports of semiconductor-related items to China, which China firmly opposes.”

Ultralow power AI chips are possible thanks to SNNs

This is not the first time the US has sought to restrict chip suppliers. Former President Donald Trump’s government prohibited vendors from selling semiconductors developed in the United States to tech giant Huawei without a special license in 2020.

Without American chips from businesses such as Nvidia and AMD, Chinese enterprises cannot do modern computer activities such as image and speech recognition, among others, at a reasonable cost.

Consumer devices such as cellphones that can respond to questions and tag photographs use image recognition and natural language processing. They also have military applications, such as searching satellite pictures for weapons or bases, as well as filtering digital communications for intelligence collection.

Nvidia stated that it had booked $400 million in sales of the impacted AI chips to China this quarter, which might be lost if businesses do not purchase alternative Nvidia products. It stated that it intends to seek exemptions from the regulation.

MIT researchers have built a new LEGO-like AI chip

According to Stacy Rasgon, a financial analyst at Bernstein, the disclosure indicated that approximately 10% of Nvidia’s data center sales came from China and that the sales damage was likely “manageable” for the company. “It’s not (investment) thesis changing, but it’s not a good look. What happens on both sides now is the question. “

Last week, Nvidia forecasted a steep reduction in sales for the upcoming quarter due to a weaker gaming sector. It said it projected third-quarter revenues to plummet 17% from the same period last year.