AMD retains rating at Wells Fargo despite no big customers named for new AI chip
Justin Sullivan
Advanced Micro Devices (NASDAQ:AMD) introduced several products and provided details on its artificial intelligence related chip, which could potentially challenge market leader Nvidia (NVDA) in the generative AI arena, at an event.
Wells Fargo Securities rating and price target:
Wells Fargo Securities reiterated its Over Weight rating and raised its price target on AMD to $150 from $120 following the launch of the Genoa-X and Bergamo (cloud-optimized) Zen 4/4c EPYC server CPUs; and preview of MI300X GPUs.
The analysts said they think AMD shares sold off as there were no MI300 customer announcements. However consistent with the analysts' expectation, AMD noted that a full MI300 launch is scheduled for Q4'23 â expecting cloud announcements then.
The analysts added that Microsoft (MSFT) remains widely anticipated. The firm also noted that Soumith Chintala, Founder of PyTorch/ VP at Meta, noted that they were "very excited" for AMD's MI300.
MI300:
At the "Data Center and AI Technology Premiere," AMD revealed new details of the AMD Instinct MI300 Series accelerator family, including introducing the AMD Instinct MI300X accelerator, the world's most advanced accelerator for generative AI, according to the company.
AMD Chair and CEO Lisa Su said, "AI is the defining technology shaping the next generation of computing and the largest strategic growth opportunity for AMD. We are laser focused on accelerating the deployment of AMD AI platforms at scale in the data center, led by the launch of our Instinct MI300 accelerators planned for later this year and the growing ecosystem of enterprise-ready AI software optimized for our hardware."
AMD noted that the MI300X is based on the next-gen AMD CDNA 3 accelerator architecture and supports up to 192 GB of HBM3 memory to provide computing and memory efficiency needed for large language model, or LLM, training and inference for generative AI workloads.
AMD said that MI300X will be sampled to key customers starting in Q3.
With the large memory of AMD Instinct MI300X, users can now fit LLMs such as Falcon-40, a 40B parameter model on a single, MI300X accelerator, according to the company.
AMD also introduced AMD Instinct Platform that brings together eight MI300X accelerators into a standard design for AI inference and training.
In addition, the company noted that the AMD Instinct MI300A, the world's first APU Accelerator for HPC and AI workloads, is now sampling to customers.
EPYC Processors:
AMD announced a continuation of its relationship with Amazon Web Services, part of Amazon (AMZN), with a preview of Amazon Elastic Compute Cloud (Amazon EC2) M7a instances, powered by 4th Gen AMD EPYC processors.
In a separate release, AMD said it introduced the addition of two new, workload optimized processors to the 4th Gen EPYC CPU portfolio.
The company said that by using the new 'Zen 4c' core architecture, the AMD EPYC 97X4 cloud native-optimized data center CPUs extend the EPYC 9004 Series of processors to provide the thread density and scale needed for leadership in cloud native computing.
In addition, AMD announced the 4th Gen AMD EPYC processors with AMD 3D V-Cache technology, suited for demanding technical computing workloads.
AMD +2.55% to $127.70 premarket June 14
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