TLDR:
- AMD unveiled new AI chips at Advancing AI 2024 event
- 5th Gen EPYC CPUs claim performance advantages over Intel
- Instinct MI325X AI accelerator to compete with Nvidia’s H200
- Ryzen AI PRO 300 processors target enterprise AI PCs
- AMD stock fell 4% despite positive announcements
AMD introduced its latest artificial intelligence chips at the Advancing AI 2024 event in San Francisco, aiming to compete with market leaders Nvidia and Intel in the rapidly growing AI hardware space.
The company showcased its new 5th Gen AMD EPYC central processing units (CPUs) for servers, provided details on the Instinct MI325X AI accelerator, and introduced Ryzen AI PRO 300 processors for enterprise AI PCs.
The top-of-the-line 5th Gen EPYC 9965 chip, priced at $14,813, is positioned to outperform Intel’s fifth-generation Xeon server chips in specific scenarios.
AMD claims its processors offer 4x faster video transcoding times, 3.9x improvements in time to insights for scientific and high-performance computing applications, and 1.6x performance per core in virtualized infrastructure compared to Intel’s offerings.
In the AI accelerator domain, AMD’s MI325X chip is set to challenge Nvidia’s popular H200 AI chip. The company boasts that the MI325X provides 1.8x higher memory capacity and 1.3x more bandwidth than Nvidia’s H200. Major tech companies, including Dell, HPE, Lenovo, and Super Micro Computer, are expected to offer MI325-based platforms in the first quarter of 2025.
AMD’s Data Center business has seen significant growth, with sales reaching $2.8 billion in the most recent quarter, up 115% year over year. However, this still trails behind Nvidia’s Data Center business, which reported revenue of $26.3 billion, jumping 154% year over year.
The company also introduced its Ryzen AI PRO 300 processors for enterprise PCs, claiming that the high-end Ryzen AI 9 HX PRO 375 offers 40% better performance and 14% faster productivity performance than Intel’s Core Ultra 7 165U chip. These new processors are part of AMD’s strategy to capitalize on the emerging AI PC market.
Despite these announcements, AMD’s stock fell more than 4% in afternoon trading on the day of the event. The stock closed at $164.18, down $6.84 or 4.00% for the day. This decline may be attributed to a “buy the rumor, sell the news” scenario, as investors had likely already priced in the expectations for new product announcements.

AMD’s push into the AI chip market comes as the demand for artificial intelligence hardware continues to grow. The company estimates that the AI chip market will be worth $500 billion by 2028.
While Nvidia currently dominates the data center GPU market with over 90% market share, AMD is positioning itself to capture a larger portion of this expanding market.
The success of AMD’s new AI chips will depend on their adoption by major cloud providers and internet companies. While AMD has disclosed that Meta and Microsoft are among the customers for its AI GPUs, the company did not reveal any new major cloud or internet customers for its Instinct GPUs at the event.
AMD faces challenges in competing with Nvidia, particularly due to Nvidia’s established CUDA programming language, which has become standard among AI developers. In response, AMD has been improving its competing software, called ROCm, to make it easier for developers to switch their AI models to AMD’s chips.
The company is also accelerating its product schedule to release new chips annually, with the MI350 planned for 2025 and the MI400 for 2026. This aggressive timeline demonstrates AMD’s commitment to competing in the AI chip market and capitalizing on the ongoing AI boom.
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