Advanced Micro Devices (AMD) is holding a financial analyst day today at the Nasdaq in New York, where the company plans to share its strategies for its artificial intelligence (AI) chip and systems businesses. This event comes as AMD works hard to grow its presence in the AI market, where rival Nvidia currently holds a dominant position in data center chips amid booming demand. While AMD aims to make bigger waves in AI, the company has already found strong success in the central processing unit (CPU) business, steadily gaining market share from Intel.
Looking ahead, AMD will launch its next-generation MI400 series of AI chips in 2026. These new chips will come in different versions, designed for specialized uses like scientific research and the rapidly growing field of generative AI. Alongside the MI400 chips, AMD also plans to introduce a complete server rack system. This new product will be similar to Nvidia’s GB200 NVL72, showing AMD’s intention to offer comprehensive solutions for large-scale AI operations.
During these analyst days, leaders from AMD’s various business units typically present their plans and financial predictions for the next few years. Beyond its AI chips, AMD will likely discuss its other important businesses, including chips for personal computers and video game consoles, as well as its programmable chip division.
Just last week, the Santa Clara, California-based company gave a positive forecast for fourth-quarter revenue, which was higher than Wall Street analysts’ expectations. Strong demand for AI chips gave AMD executives a good reason to feel optimistic about the rest of the year. The company’s data center CPU business has also benefited from the significant increase in AI spending. AMD last held an analyst day in 2022, making today’s event, which starts at 1 p.m. EST, a highly anticipated update for investors and the tech industry.
In a significant move in October, AMD signed a multiyear agreement with OpenAI, the company behind ChatGPT. This deal could bring AMD more than $100 billion in new revenue over four years from OpenAI and other customers. As part of this arrangement, OpenAI will receive options to purchase up to a 10% stake in the chipmaker. This deal with OpenAI is a crucial customer win for AMD, as the company has been working to capture a larger share of the enormous AI spending boom. In this area, Nvidia has seen exceptional returns.
