Could there be a much more thrilling prospect than an Nvidia (NASDAQ:NVDA) killer, especially given the sheer level of dominance Nvidia holds as both a chip stock and an AI stock right now? But that’s just what AMD (NASDAQ:AMD) is going for, though it doesn’t seem to have quite stuck the dismount. Indeed, AMD is down somewhat in Wednesday afternoon’s trading after showing off the new chip.
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The chip in question, which was supposed to help take the fight to Nvidia, is called the MI300, an “AI accelerator” that should give AMD an extra edge in data center applications. The MI300 is a potent chip; it not only improves performance three-fold, but it also offers seven times greater intake performance as well.
AMD looks for the MI300 to be worth over $2 billion in 2024 alone. This sounds great until you look at some of AMD’s recently released numbers that suggest the AI accelerator market itself should be worth about $400 billion by 2027.
Frantic Pitches and Backbiting
Like a feverish late-night infomercial pitch, AMD had more to show off. As part of the “Advance AI” effort, AMD showed off some of the newest chips that will comprise the Ryzen 8040 series as well. Dubbed the “…next step in personal AI processing,” the new Ryzen chips will be available in four-core, six-core, and eight-core setups. Yet, even as AMD rolled out a range of new chips, competitor Intel (NASDAQ:INTC) rolled out a presentation geared toward system integrators. The presentation was deleted shortly after it was posted, reports note, but in the presentation, Intel compared AMD’s chip naming process to the “snake oil” salesmen of the distant past and offered up a string of reasons that were, overall, hard to refute.
Is AMD a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMD stock based on 22 Buys and seven Holds assigned in the past three months, as indicated by the graphic below. After a 66.94% rally in its share price over the past year, the average AMD price target of $126.79 per share implies 8.44% upside potential.
