The stock price of Advanced Micro Devices (AMD) rose nearly 10% on Thursday (Dec.7) in the company’s best single trading day since May.
The spike came a day after it launched new artificial intelligence (AI) chips designed to compete against chipmaker rival, Nvidia, reported CNBC. Thursday’s increase in AMD shares suggests investors are backing the company’s assertions it can take on its bigger competitor.
On Wednesday, AMD CEO Lisa Su discussed the new MI300X accelerator chip which is a large graphics processor designed for AI-oriented servers, and said Microsoft and Meta had committed to using the chip.
— CNBC (@CNBC) December 6, 2023
Speaking to reporters following her speech, Su said the anticipated $400bn market for AI processors in 2027 left plenty of space for AMD. “We think we could get a nice piece of that,” the Financial Times reported. Included in the estimate is China, which is facing a US government crackdown on exports of advanced AI chips.
Su said AMD “spends a lot of time with the [Biden] administration” and US Commerce Department. “We understand for the most advanced chips, [export restrictions] are important for us to have — from a national security standpoint.”
The chipmaker has also been expanding operations in Asia. In November, AMD opened its largest global design center in India. The state-of-the-art campus in the city of Bengaluru will employ around 3,000 engineers in the coming years and focus on the design and development of the company’s semiconductor technology including 3D stacking, artificial intelligence (AI), and more.