AMD Will Become an AI Chip Company, Similar to Nvidia
Morrissey Technology – Nvidia was originally known as a graphics chip manufacturing company, but now the majority of its revenue comes from AI chips. AMD seems to be following Nvidia’s steps. In AMD’s Q2 2024 financial report, it appears that half of AMD’s sales come from products for data centers, not chips for PCs, consoles, or for industry and motor vehicles. AMD’s data center business has doubled in a year, and this quarter its growth was driven by one chip, the AMD Instinct MI300 accelerator, which is a competitor to Nvidia’s H100 AI chip.
According to AMD CEO Lisa Su, from sales of this chip AMD earned more than UDS 1 billion in one quarter, as quoted by detikINET from The Verge, Wednesday (31/8/2024). From this it can be seen that AMD is following in the footsteps of Nvidia, which can reap huge profits from the H100 chip which is very popular for AI processing purposes. Now Nvidia even claims to release a new AI chip every year.
Likewise with AMD, which plans to release new AI chips every year. They have prepared the M1325X which will be available in Q4 2024, then the M1350 for 2025, and the MI400 for 2026. Lisa Su said the M1350 chip will be very competitive with the Nvidia Blackwell which was revealed to the public last March and is predicted to be the fastest AI chip in the world .
Even now, the M1300 chip is always sold out, meaning sales are in accordance with the chip’s production capacity. He also admitted that with the supply chain continuing to increase, chip supply will still be limited until 2025.
Despite following Nvidia’s steps, AMD’s data center business is still nothing compared to Nvidia. AMD’s revenue of “only” USD 2.8 billion is far less than Nvidia’s revenue which reached USD 22.6 billion in the same quarter. It should be noted, this income is also a new largest record for Nvidia.
AMD’s income from the PC business — CPU and GPU — also grew in Q2 2024. Ryzen CPU sales increased 49% year over year, as did Radeon 6000 GPUs which also rose. The decline actually came from chips for PlayStation and Xbox, which fell 59%.