Advanced Micro Devices (AMD) is confident that artificial intelligence (AI)-powered personal computers will play a crucial role in the ongoing AI competition against rivals Nvidia and Intel. These AI PCs utilize AI processors to execute advanced capabilities.
According to tech research firm Canalys, generative AI is anticipated to substantially increase sales for personalized computers as users become more aware of AI's capabilities. The firm projects that 60% of the PCs shipped in 2027 will be AI-capable. Currently, Nvidia, a leading tech company, dominates the market for Graphics Processing Units (GPUs) used in AI applications such as OpenAI's ChatGPT. As reported by CNBC, Nvidia announced in January that it would provide GPUs for laptops from Dell, Acer, and Lenovo.
CNBC also reports that Intel has developed Core Ultra chips designed to expedite the running of AI programs. These chips power AI PCs from companies like Acer, Dell, HP, and Lenovo. AMD aims to compete with these advancements through its launch of new Instinct MI300X chips - graphic processors designed for large language model training. This chip is expected to rival Nvidia's H100 chips.
In 2023, AMD experienced significant growth as the company reported revenue exceeding $22.7 billion with a gross margin of 46%. The net income reported was $4.3 billion, with $6.2 billion of the annual revenue reported in the fourth quarter of 2023 alone. "We finished 2023 strong, with sequential and year-over-year revenue and earnings growth driven by record quarterly AMD Instinct GPU and EPYC CPU sales and higher AMD Ryzen processor sales," said Dr. Lisa Su, Chair and CEO of AMD. She further stated that "Demand for our high-performance data center product portfolio continues to accelerate, positioning us well to deliver strong annual growth in what is an incredibly exciting time as AI re-shapes virtually every part of the computing market."
