Close Menu
  • Tech Insights
  • Laptops
  • Mobiles
  • Gaming
  • Apps
  • Money
  • Latest in Tech
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
TechzLab – Tech News, Gadgets, Mobile & IT UpdatesTechzLab – Tech News, Gadgets, Mobile & IT Updates
  • Tech Insights
  • Laptops
  • Mobiles
  • Gaming
  • Apps
  • Money
  • Latest in Tech
TechzLab – Tech News, Gadgets, Mobile & IT UpdatesTechzLab – Tech News, Gadgets, Mobile & IT Updates
Home » AMD Sees Next AI Chip in Mass Production Later This Year
Laptops

AMD Sees Next AI Chip in Mass Production Later This Year

adminBy adminOctober 13, 2024No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
AMD Sees Next AI Chip in Mass Production Later This Year
Share
Facebook Twitter LinkedIn Pinterest Email

Advanced Micro Devices said on Thursday it plans to start mass production of a new version of its Artificial Intelligence (AI) chip called the MI325X in the fourth quarter of the year, as it seeks to bolster its presence in a market dominated by Nvidia.

At an event in San Francisco, AMD CEO Lisa Su said the company plans to release its next-generation MI350 series chips in the second half of 2025. These chips include an increased amount of memory and will boast a new underlying architecture that AMD said will improve performance significantly over the prior MI300X and MI250X chips.

The announcements were broadly expected based on AMD disclosures earlier this year. They failed to cheer investors, who sent AMD shares down nearly five percent in afternoon trading. Some analysts attributed the fall to the absence of large new cloud-computing customers for the chips.

Shares of rival Nvidia were up 1.5 percent while Intel fell 1.6 percent.  

Demand for AI processors from major technology firms such as Microsoft and Meta Platforms has been far outpacing supply from Nvidia and AMD, allowing the semiconductor companies to sell as much as they can produce.

That has driven a massive rally in chip stocks over the past two years, with AMD’s shares up about 30 percent since a recent low in early August. 

“There are no new customers announced so far,” said Summit Insights research analyst Kinngai Chan, adding that the stock had gained ahead of the event in anticipation of “something new.”

Santa Clara, California-based AMD said vendors such as Super Micro Computer would begin to ship its MI325X AI chip to customers in the first quarter of 2025. The AMD design aims to compete with Nvidia’s Blackwell architecture.

The MI325X chip uses the same architecture as the already-available MI300X, which AMD launched last year. The new chip includes a new type of memory that AMD said will speed AI calculations.

AMD’s next-generation AI chips are likely to put further pressure on Intel, which has struggled to deploy a coherent AI chips strategy. Intel has forecast AI chip sales of more than $500 million (roughly Rs. 4,203 crore) in 2024.

New Server, PC Chips

AMD’s Su also said at the event that the company does not currently have plans to use contract chip manufacturers beyond Taiwan’s TSMC for advanced manufacturing processes, which are used to produce speedy AI chips.

“We would love to use more capacity outside of Taiwan. We are very aggressive in the use of TSMC’s Arizona facility,” Su said.

AMD also unveiled several networking chips that help speed moving data between chips and systems inside data centers.

The company announced the availability of a new version of its server central processing unit (CPU) design. The family of chips formerly codenamed Turin includes a version of one of them that is designed to keep the graphics processing units (GPUs) fed with data – which will speed AI processing.

The flagship chip boasts nearly 200 processing cores and is priced at $14,813 (roughly Rs. 12.45 lakh). The whole line of processors uses the Zen 5 architecture that offers speed gains of as much as 37 percent for advanced AI data crunching.

Beyond the data center chips, AMD announced three new PC chips aimed at laptops, based on the Zen 5 architecture. The new chips are tuned to run AI applications and will be capable of running Microsoft’s Copilot+ software.

In July, AMD raised its AI chip forecast to $4.5 billion (roughly Rs. 37,834 crore) for the year from its previous target of $4 billion (roughly Rs. 33,630 crore). Demand for its MI300X chips has surged because of the frenzy around building and deploying generative AI products.

This year analysts expect AMD to report data center revenue of $12.83 billion (roughly Rs. 10,78,711 crore), according to LSEG estimates. Wall Street expects Nvidia to report data center revenue of $110.36 billion (roughly Rs. 9,27,877 crore). Data center revenue is a proxy for AI chips needed to build and run AI applications.

Analysts’ rising earnings expectations have kept AMD and Nvidia’s valuations in check despite the share surge. Both the companies trade at more than 33 times their 12-month forward earnings estimates, compared with the benchmark S&P 500’s 22.3.

© Thomson Reuters 2024

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
admin
  • Website

Related Posts

Our 3D printing expert reckons our favorite 3D printer delivers “exceptional build quality and advanced features” – and it’s got a big price-cut ahead of Prime Day

July 5, 2025

Apple MacBook Pro With M5 Chip to Launch This Year; 15 Mac Computers in Development: Report

July 4, 2025

Looks like the latest Nvidia driver has given some RTX 5080 and 5090 laptops a little performance boost – PC Gamer

July 3, 2025

Comments are closed.

Latest
  • Gears of War: Reloaded game set to launch across consoles and PC on August 26 July 5, 2025
  • Buying a new phone? Here are the top 3 key things to look out for in 2025 July 5, 2025
  • Samsung Galaxy Z Fold 7, Galaxy Z Flip 7 First-Party Cases and Screen Protectors Leaked: See Colours July 5, 2025
  • Our 3D printing expert reckons our favorite 3D printer delivers “exceptional build quality and advanced features” – and it’s got a big price-cut ahead of Prime Day July 5, 2025
  • This All-in-One Appliance Is My New Kitchen Sidekick and It’s 20% Off With This Last-Chance July 4th Deal July 5, 2025
We are social
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo

Subscribe to Updates

Get the latest creative news from Techzlab.

Tags
Ada Ventures Alphabet Apple Automatic cybersecurity daniel ek data centers defense tech doge Donald Trump Elon Musk evergreens EVs Exclusive First matter foodtech Fundraise fundraising Google helsing In Brief India legal tech Meta Microsoft Openai Pinterest Polar remittance restaurant tech robotics Scales to Sequioa Shopify social media SpaceX Spotify Startups TechCrunch All Stage 2025 Tesla Trump Administration UK venture WordPress Y Combinator
Archives
Quick Link
  • Apps (239)
  • From the Editor (3)
  • Gaming (238)
  • Laptops (239)
  • Latest in Tech (239)
  • Mobiles (240)
  • Money (63)
  • Tech Insights (239)
Don't miss

Want to escape Earth this weekend? Watch these 5 shows for unforgettable journeys to strange sci-fi worlds

July 5, 2025

The AI Chatbots We Use Most, and How We Use Them

July 4, 2025

The 70+ best July 4th deals live now: Save on outdoor, tech, home and more

July 3, 2025
Follow us
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo
© 2025 Techzlab.com Designed and Developed by WebExpert.
  • Home
  • From the Editor
  • Money
  • Privacy Policy
  • Contact

Type above and press Enter to search. Press Esc to cancel.