Advanced Micro Devices (NASDAQ:AMD) is poised to challenge Nvidia (NASDAQ:NVDA)'s dominance in the artificial intelligence (AI) market with its "MI300X" AI microchip, an enhanced version of the MI300 APU with additional GPU dies for increased computing power and memory. The chip, which is expected to go into full production by Q4 2023, is designed to compete with Nvidia's A100 and H100 GPUs in large AI applications, particularly in inference solutions.
According to InvestingPro, AMD is a prominent player in the Semiconductors and Semiconductor Equipment industry and has seen high returns over the past year, decade, and even the last five years. Despite a declining trend in earnings per share, net income is expected to grow this year.
The company has been making significant strides in its Data Center segment and has delivered strong financial performance, surpassing expectations in its Q2 earnings report. AMD's CEO, Lisa Su, expressed optimism about the company's potential in the AI processor market.
This week, Microsoft (NASDAQ:MSFT)'s CTO, Kevin Scott, lauded AMD's GPU chips and their growing importance in the market. This endorsement led to a nearly 5% surge in AMD's stock. Amid Nvidia facing antitrust scrutiny in France, AMD could seize growth opportunities.
Rumors have circulated that AMD is collaborating with Microsoft on a custom AI chip and has seen Bing integrate its AI technologies. Companies like Lamini have found AMD's ROCm software comparable to Nvidia's CUDA.
InvestingPro data shows that AMD has a market cap of 165.44B USD and revenue of 21.88B USD. The company's stock has shown consistent growth, increasing 65% year-to-date, 83% over the past year, and 301% over the past five years. The company is expected to release its Q3 earnings report around October 31, 2023.
For more insights like these, check out InvestingPro's additional 14 tips for AMD here.
Meanwhile, Nvidia also remains a strong player in the industry, with a high return on invested capital and consistent dividend payments for 12 consecutive years. The company's net income is also expected to grow this year, and analysts predict it will remain profitable. Nvidia's market cap is significantly higher than AMD's at 1040.0B USD, and its revenue is also higher at 32.68B USD. Despite a recent dip, Nvidia's stock has also seen a large price uptick over the last six months.
For more insights like these, check out InvestingPro's additional 23 tips for Nvidia here.
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