AMD stock price jumps as company releases AI chip to compete with Nvidia

Sam Shedden / Last Updated: Dec 8, 2023 / AI / Finance
Advanced Micro Devices (AMD) make advanced chips

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.

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.

Featured image: Photo by Vladimir Malyutin on Unsplash 

Sam Shedden

Managing Editor

Sam Shedden is an experienced journalist and editor with over a decade of experience in online news. A seasoned technology writer and content strategist, he has contributed to many UK regional and national publications including The Scotsman, inews.co.uk, nationalworld.com, Edinburgh Evening News, The Daily Record and more. Sam has written and edited content for audiences whose interests include media, technology, AI, start-ups and innovation. He's also produced and set-up email newsletters in numerous specialist topics in previous roles and his work on newsletters saw him nominated as Newsletter Hero Of The Year at the UK's Publisher Newsletter Awards 2023. He has worked in roles focused on growing reader revenue and loyalty at one of the UK's leading news publishers, National World plc growing quality, profitable news sites. He has given industry talks and presentations sharing his experience growing digital audiences to international audiences. Now a Managing Editor at Readwrite.com, Sam is involved in all aspects of the site's news operation including commissioning, fact-checking, editing and content planning.