Key Takeaways
- Advanced Micro Devices is gearing up to showcase new tech at its 2024 Advancing AI event on Thursday.
- The company is expected to showcase its Instinct GPU accelerators and EPYC server processors at the event.
- Analysts said the event could be a “catch-up” catalyst for AMD in the AI accelerator market.
Advanced Micro Devices (AMD) is gearing up to showcase new tech at its 2024 Advancing AI event on Thursday, which Bank of America analysts said could be a “catch-up catalyst” for the chipmaker.
AMD is expected to highlight its line of Instinct GPU accelerators and EPYC server processors at the event, and could potentially offer a glimpse into how it plans to capture a larger share of the AI accelerator market.
Analysts expect a followup to AMD’s MI300 series of accelerators launched in the fourth quarter of 2023. The company is off to a strong start in its first year of accelerator sales, Bank of America analysts said in a note Wednesday, guiding for more than $4.5 billion in sales this year.
How AMD Could Grow Its AI Market Share
The big question is how large of a market share can it command with Nvidia (NVDA) dominating the AI sector. The current analyst consensus suggests that AMD is expected to hold a roughly 5% to 7% share of the AI accelerator market over the next couple years (while Nvidia’s share is north of 80%). However, if it could show a path to 10% by the end of 2026, the company would add about $5 billion in sales, Bank of America said.
What could help is the announcement of high-profile companies that use AMD’s MI300 series accelerators. Analysts said they believe AMD’s MI300X is already used by Microsoft (MSFT), Oracle (ORCL), and Meta (META), and others could be announced at the event.
Shares of AMD jumped nearly 10% the day after last year’s AI event in December, and could surge again after this year’s event.
The stock climbed nearly 5% Friday to $170.90 and is up about 16% so far this year, thanks to surging AI demand.