AMD releases AI model to compete with NVDA, another big winner is TSMC

$Advanced Micro Devices(AMD)$ shares rose 9.9% Thursday to close at $128.37, marking the stock’s best day since May and the highest close since June.

The surge comes a day after it launched new artificial intelligence chips that will compete against $NVIDIA Corp(NVDA)$ to power AI applications.

On Wednesday, AMD CEO Lisa Su discussed the previously announced Instinct MI300X, a large graphics processor designed for AI-oriented servers, and said $Microsoft(MSFT)$ and $Meta Platforms, Inc.(META)$ had committed to using the chip.

Nvidia has dominated the AI chip market for the past year, but cloud providers and technology companies have been searching for an alternative to save costs and provide flexibility.

Thursday’s rise in $Advanced Micro Devices(AMD)$ shares suggests investors believe the chipmaker can take a chunk of the AI chip market from Nvidia, although the company projects only $2 billion in AI GPU sales in 2024 — lower than market expectations for Nvidia AI revenue.

AMD’s new high-end chip starts shipping in significant quantities next year.

Citi analysts estimated in a note Thursday that AMD could end up with about 10% of the total AI chip market.

AMD CEO Lisa Su said at the launch event Wednesday that the company believes the total market for AI chips could climb to $400 billion over the next four years, twice as high as the company previously believed.

In 2023, the YTD of $NVIDIA Corp(NVDA)$ & $Advanced Micro Devices(AMD)$ are as follow:

$NVIDIA Corp(NVDA)$ rose 225.5%, $Advanced Micro Devices(AMD)$ rose 100%.There is still a big difference in the increase range.

The same time, there would be another winner can not be forgot- $Taiwan Semiconductor Manufacturing(TSM)$ :

According to @MikeSukhorukov, Founder and CEO of TopNetworks HUB. @top_networks
After AMD released their AI accelerators, I decided to look into TSMC's AI capabilities: $Taiwan Semiconductor Manufacturing(TSM)$ 's main influence on AI is through $NVIDIA Corp(NVDA)$, where they manufacture most of Nvidia's top-end GPUs. They also make AI accelerators for $Advanced Micro Devices(AMD)$ $Alphabet(GOOGL)$ $Amazon.com(AMZN)$ and $Microsoft(MSFT)$.

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As of post, $Taiwan Semiconductor Manufacturing(TSM)$ rose 33.29% in 2023.