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Advanced Micro Devices Inc (Nasdaq: AMD) ended slightly down on Wednesday even after Meta Platforms Inc (Nasdaq: META) and Microsoft Corp (Nasdaq: MSFT) said they’ll use its latest AI chip as an alternative to Nvidia Corp (Nasdaq: NVDA).

Is MI300X comparable to Nvidia’s H100?

Instinct MI300X – a new accelerator that AMD says will start shipping in the coming months is expected to cost less than the competing products of Nvidia that are priced at up to $40,000.

Lisa Su – the Chief Executive of Advanced Micro Devices even compared the said chip that offers 192GB of HBM3 memory directly with the Nvidia H100 at an investor event today.  

This performance directly translates into a better user experience. When you ask a model something, you’d like it to come back faster, especially as responses get more complicated.

AMD stock is currently up more than 80% for the year.

New AMD chip could hurt Nvidia sales

If the Instinct MI300X does indeed sit well with tech names working on AI applications – it will pose a meaningful competition to Nvidia and may eat into its sales that more than tripled in Q3.

Note that Nvidia has already warned of a hit in its current quarter due to the U.S. restrictions on export of sophisticated chips to China (read more).

On Wednesday, Lisa Su told investors that AMD has enhanced its software suite (ROCm) as well – thereby removing another shortcoming that’s been making artificial intelligence developers prefer Nvidia products.

Looking to unleash significantly greater performance and productivity for large language models? Say hello to ROCm 6 – our latest open software stack that accelerates AI performance and enables new capabilities for generative AI and LLMs. pic.twitter.com/G2NCIdpdu1

— AMD (@AMD) December 6, 2023

Wall Street currently has a consensus “buy” rating on shares of the California-based semiconductor behemoth.

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