Advanced Micro Devices Inc (Nasdaq: AMD) just revealed a new high-end graphics processing unit to rival Nvidia Corp (NASDAQ: NVDA) in serving A.I. heavy tasks.   

AMD MI300X advanced GPU is here

MI300X – the new A.I. chip or “accelerator” as AMD calls them supports up to 192GB of memory. In comparison, the Nvidia H100 can use up to 120GB only.

The new chip will ship to some customers by the end of this year. In a presentation on Tuesday, CEO Lisa Su said:

A.I. is our largest and most strategic long-term growth opportunity. The data centre AI accelerator market will grow from $30 billion this year to over $150 billion in 2027.

The semiconductor behemoth is yet to put a price tag on the MI300X, though. AMD shares have nearly doubled since the start of the year.

Should you buy AMD shares today?

One of the reasons why developers prefer Nvidia chips is CUDA – a software package that enables access to the chip’s hardware features. On Tuesday, though, AMD announced software that will go with its new A.I. chip as well.

Still, Scott Nations – the President of Nations Indexes rates AMD shares at “hold” only. On CNBC’s “Power Lunch”, he said:

It’s a bubble. The business side of this isn’t going to play out for two or three years. AMD is expected to see slightly lower revenue, slightly lower earnings in 2023. So, I’m not going to buy it.

Also on Tuesday, Advanced Micro Devices unveiled the Zen 4-powered Ryzen 7000 Pro series for desktops and laptops.

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