On Thursday, AMD shares experienced a 9.9% surge, closing at $128.37, marking the stock’s most robust performance since May and achieving the highest closing value since June.

This upward momentum followed the company’s launch of new artificial intelligence chips designed to compete with Nvidia in powering AI applications.

During a discussion on Wednesday, AMD CEO Lisa Su highlighted the Instinct MI300X, a substantial graphics processor tailored for AI-centric servers.

She also disclosed commitments from Microsoft and Meta to utilize this chip in their operations.

While Nvidia has been the dominant player in the AI chip market, the surge in AMD shares on Thursday suggests investor confidence in the company’s ability to capture a share of this market from Nvidia, CNBC reported.

However, AMD’s projection of $2 billion in AI GPU sales for 2024 falls below market expectations for Nvidia’s AI revenue.

Notably, Wall Street anticipates Nvidia’s data center sales to exceed $16 billion in the current quarter, although this figure encompasses various chips beyond AI GPUs.

AMD’s high-end chip, slated to begin significant shipments next year, underscores the company’s strategic move to compete in the evolving landscape of AI chip technologies.

Written by B.C. Begley

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