AMD Stock Surges Amid Instinct MI300 AI Chip Optimism

On Wednesday, Advanced Micro Devices (AMD) shares soared after a positive 2024 Instinct MI300 AI Chip sales forecast.

AMD’s stock grew by 9.69% to $108.04 per share on November 01 after the optimistic third-quarter earnings report. Moreover, market watchers anticipate an additional 0.34% increase to $108.41 apiece in the upcoming session.

The Santa Clara, California-based company posted revenue of $5.80 billion in the third quarter, 1.75% above the $5.70 billion projection. Furthermore, it generated earnings per share (EPS) of $0.70, exceeding the expected $0.68 EPS by 2.94%.

Its adjusted operating margin of 22.00% also surpassed estimates of 21.60%. However, AMD revised its fourth-quarter revenue guidance downward by 4.69% from $6.40 billion to $6.10 billion.

Chairman and CEO Dr. Lisa Su said the company will focus on artificial intelligence (AI) and data centers next year. She emphasized that the AI field is moving even faster than it appears.

Su added that they expect the Instinct MI300 graphics card to hit $1.00 billion in sales, the fastest in AMD’s history. MI300 was specially designed for large language model (LLM) data training and does not support DirectX 11 or DirectX 12.

Hence, it might only be compatible with some of the current-generation games. In exchange, it is optimized for generative AI (GenAI) processing.

Instinct MI300 to Help AMD Catch Up with Nvidia

Nvidia (NVDA) has a global monopoly on AI chips, and everyone else is playing catch-up. AMD hopes to level the playing field next year by ramping up production of the MI300.

Built on the 5 nm process, the dual-slot card has 14,080 cores and a 128-gigabyte memory size. MI300 generates energy using two 8-pin power connectors with a 600-watt power draw.

Additionally, it utilizes an 8,192-bit memory interface, operating at a frequency of 1,000 MHz that can overclock to 1,700 MHz. The card, however, lacks display connectivity as it was not designed to accommodate monitors.

Most international tech companies plan to ramp up research and development (R&D) on GenAI technology. AMD plans to compete head-on with Nvidia in winning over the lucrative consumers of advanced AI chips.