Advanced Micro Devices on Thursday touted the price and performance advantages of its AI data center systems over rival Nvidia. The chipmaker also previewed full-rack systems for customers. But AMD stock fell on Thursday.
Chief Executive Lisa Su made the announcements at the company's Advancing AI event.
She said AMD is continuing to deliver on its annual release cadence for new AI accelerators, with its Instinct MI350 series processors now on the market.
The company also is gaining ground with customers with its chips for artificial intelligence. Seven of the top 10 AI companies have deployed Instinct at scale, she said. They include Meta Platforms, Microsoft, OpenAI and Oracle.
The company's top-of-the-line MI355X graphics processing units deliver up to 40% more tokens per dollar than Nvidia's current B200 GPUs, she said.
"We have made outstanding progress building the foundational product, technology and customer relationships needed to capture a meaningful portion of this market," Su said. "And we believe this places AMD on a steep long-term growth trajectory, led by the rapid scaling of our data center AI franchise from more than $5 billion of revenue in 2024 to tens of billions of dollars of annual revenue over the coming years."
AMD revealed an open-standards, rack-scale AI infrastructure that is set for broad availability in the second half of 2025. The system features AMD Instinct MI350 series accelerators, fifth-generation AMD Epyc central processing units (CPUs) and AMD Pensando Pollara network interface cards (NICs).
Plus, AMD previewed its next-generation AI server rack called Helios, due out in 2026. It will be built on AMD Instinct MI400 series GPUs, Zen 6-based AMD Epyc Venice CPUs and AMD Pensando Vulcano NICs.
"Helios is truly a game changer," Su said. It combines all of AMD's technologies across processors, software and networking, she said.
AMD Stock Pulls Back
On the stock market today, AMD stock slid 2.2% to close at 118.50.
AMD sees the market for data center AI accelerators topping $500 billion by 2028, Su said. That represents a compound annual growth rate of more than 60% from 2023.
Su stressed the importance of open industry standards for driving the development of new technologies. Open systems create more competition and foster faster innovation vs. closed or proprietary systems, she said.
AMD's rack-scale systems were made possible by the company's recent acquisition of ZT Systems, completed on March 31. The complete-systems approach gives AMD a better competitive footing against rival Nvidia, which already sells rack-scale systems.
"That's the primary reason why we made the ZT Systems acquisition several months ago," Andrew Dieckmann, general manager of AMD's data center GPU business, told journalists Wednesday. With the deal, AMD brought on board more than 1,000 engineers skilled in data center systems design, he said.
"ZT was well regarded in the industry as one of the best" original design manufacturers, he said.
AMD stock ranks No. 10 out of 39 stocks in IBD's fabless chipmaker industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 79 out of 99.
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