Competition could also pose a challenge for AMD's AI chip business as its MI300 chip competes directly with Nvidia's popular H100 chip. Goldman Sachs reports that Nvidia's next-generation H200 chip is twice as powerful as its predecessor, suggesting AMD may already be lagging behind. Nvidia's CEO, Jensen Huang, has expressed confidence in his company's competitive edge, stating that even if competitors' chips were free, they couldn't match the compute power offered by Nvidia's GPUs.
Key takeaways:
- AI stocks, including AMD, Nvidia, and Super Micro Computer, saw a significant drop in market value after AMD's revenue guidance for its AI chips fell short of Wall Street expectations.
- AMD expects its MI300 AI chips to generate $4 billion in revenue in 2024, which is lower than some forecasts, leading to a collective market value loss of $143 billion for the mentioned companies.
- AMD CEO Lisa Su dismissed concerns of a demand problem, stating that supply is the bigger issue for its AI chip sales.
- Nvidia's next generation H200 chip is reportedly 2-times more powerful than its older H100 chip, potentially putting AMD behind in the AI chip market.