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AMD’s new AI chip will begin production later this year.
Justin Sullivan/Getty Images
Advanced Micro Devices
’ big chip launch may have left investors feeling uninspired but the semiconductor company can still challenge
Nvidia
and be an AI winner, according to one analyst.
The stock fell 3.6% Tuesday after AMD’s (ticker:AMD) Chief Executive Lisa Su unveiled the company’s new AI chip–the MI300X. Customers will begin sampling the technology in the third quarter and production will ramp up in the fourth quarter, she said at an event in San Francisco.
The shares have still climbed more than 90% so far in 2023, benefiting from the increased interest and hype around artificial intelligence.
KeyBanc Capital Markets analysts, led by John Vinh, said investors may have been disappointed by the fact that AMD didn’t announce
Microsoft
(MSFT) as a customer for the new chip.
However, Vinh said that was an “unrealistically high expectation,” given the chip won’t start being sampled by customers until the third quarter.
Another concern may be that AMD wasn’t able to make the same performance claims as
Nvidia
(NVDA), he said, adding that the company was still set to gain market share as an alternative.
The analysts remain bullish on the stock, reiterating an Overweight rating with a price target of $150, implying a 20% upside to Tuesday’s closing price. “Altogether, we thought it was a constructive event and maintain that AMD stands to be a major beneficiary and share gainer as it relates to generative AI,” they said.
The stock pointed 1.6% higher in premarket trading Wednesday.
Write to Callum Keown at [email protected]
Source: https://www.barrons.com/articles/amd-chip-ai-stock-nvidia-50985fd3?siteid=yhoof2&yptr=yahoo