AMD is positioning itself as the primary alternative supplier to Nvidia for artificial-intelligence chips in data centers. The big question is, how much of the market share can AMD realistically capture?
According to Raymond James analyst Srini Pajjuri, the current Wall Street expectations are that AMD will ship between 250,000 and 500,000 units of its MI300 AI data-center chip in 2024.
AMD has secured three major customers for its AI chips—Microsoft, Meta Platforms, and Oracle. Pajjuri noted that the Street expectations indicate AMD could have a 15% to 25% share of AI shipments to those customers, with Nvidia taking the rest.
Pajjuri expressed caution, stating, “We…believe that a vast majority of AMD’s 2024 shipments are likely going to Microsoft and Meta. Such a rapid share gain is less common in Data Center and could also attract more aggressive competitive reaction from Nvidia.”
As a result, Pajjuri downgraded his rating on the stock to Outperform from Strong Buy, citing the market share assumptions.
2024-01-30 05:54:56
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