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AMD unveils new AI server chips to compete with NVIDIA's H100 and A100 GPUs

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Update time : 2024-01-25 09:17:21
        In the U.S. on Tuesday, shares of AMD closed up more than 8%, its highest close since November 2021, on optimism that demand for its artificial intelligence chips will increase from companies like Microsoft, Google and OpenAI, the company learned.
 
 
        Barclays analyst Tom O'Malley raised his price target on AMD from $120 to $200, giving it a "buy" rating and noting that AMD's AI chip sales could reach $4 billion this year. O'Malley said the market demand for AMD's top-end server machine-learning chip MI300 is strong.KeyBanc analysts on Tuesday raised their price targets on AMD and Nvidia to $195 and $740, respectively, due to strong market demand for artificial intelligence servers.
        AMD closed at $158.74 on Tuesday, about 2% below the stock's all-time high. NVIDIA, on the other hand, rose 3 percent to $563.82. NVIDIA has the lion's share of the artificial intelligence chip market and was the best-performing stock in the S&P 500 last year. At the end of 2023, AMD introduced new AI server chips to compete with Nvidia's H100 and A100 GPUs, which OpenAI uses to train and serve its models.AMD and Nvidia are the two main producers of GPUs. In the past, GPUs were primarily used in gaming, but today are critical for training and running AI models. As AI applications have gained investor attention over the past two years, NVIDIA has been a major beneficiary as the company developed AI software for its chips more than a decade ago.
        Venture capitalist Jim Breyer said in an interview Tuesday, "They've built a software layer around their chips, and the companies I've invested in have always had an unmet need for that." Analysts generally agree that AMD is improving its AI software and expect major chip buyers such as cloud providers and tech giants to seriously consider using AMD's GPUs. o'Malley said, "We're by no means underestimating Nvidia's lead, but we think the desire to have a second source will overcome the software ecosystem's difficulties. "
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