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Advanced Micro Devices Inc‘s (NASDAQ:AMD) Data Center Group recently shared insights at the UBS Annual Technology Conference.
According to the company’s EVP and GM, Forrest Norrod, the upcoming “Advancing AI” event on Dec. 6 will focus on the MI300.
The bet is that MI300 will position AMD as a credible alternative for generative AI and large-scale AI systems.
AMD’s MI300: Norrod outlined the strategic approach, emphasizing the MI300’s variants set to launch formally at the upcoming event. This move signifies a significant milestone in AMD’s journey. With MI300, AMD seeks to establish itself as a robust contender in the AI space.
On the AI front, Norrod expects extraordinary interest levels over the next 24 to 36 months, with sequential growth anticipated in each quarter. He reiterated that AMD’s MI300 revenue should exceed $2 billion in the next year.
Market Share & Competition: In North America hyperscalers, AMD’s aggregate share is well above 50%. In the enterprise sector, AMD is in the mid-teens and is focusing on increasing its share further, particularly with partners like Hewlett Packard Enterprise Co (NYSE:HPE), Dell Technologies Inc (NYSE:DELL), Lenovo Group Ltd (OTCPK:LNVGF) (OTCPK:LNVGY), and Supermicro.
Also Read: Dell Disappoints With Q3 Revenue As PC Market Slowly Gets Back To Its Feet
Comparing AMD with principal competitor NVIDIA Corp (NASDAQ:NVDA), Norrod expressed confidence in being substantially ahead in chiplet technology with their MI300. He also discussed plans for the Chinese market, emphasizing compliance with U.S. export regulations. China will embrace generative AI, Norrod predicts. The “promise of the capabilities of generative AI are so large and China is such a large market,” he adds.
Addressing concerns about the cannibalization of general compute TAM by AI, Norrod did acknowledge short-term challenges. However, he also stressed on the long-term additive nature of AI capabilities to existing workloads.
AMD’s Business, Partnerships and Operating Margins: Nod.ai and Mipsology are “great additions” on the software front for AMD, acknowledged Norrod. The central thrust of AMD’s software efforts currently revolves around partnerships with hyperscalers, open-source initiatives, and minimizing friction for AMD adoption.
AMD’s existing foundry partnership with Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) is strong with the company being so capable. Regarding foundry partnerships, Norrod praised TSMC but left the door open for Intel Corp (NASDAQ:INTC). They would listen if Intel catches up, he adds.
AMD has an ambition for a 30% plus operating margin over time. AMD’s heavy investment cycle is part of the company’s anticipated growth in AI and other sectors, Norrod says.
Read Next: AMD Invests $400M In India: New Campus To Spearhead AI, Semiconductor Advances
