11 October 2024
If you are covering AMD’s latest capital markets day, please find below a comment from Ben Barringer, technology analyst at Quilter Cheviot:
“AMD’s share price had a good run up to its latest Capital Markets Day, but with no big bangs or positive surprises, investors were left without a huge amount new to take away. As a result, the share price dipped despite the grand opportunity AMD sees for itself in the AI chips arms race.
“The company was keen to state just how big the opportunity is to investors. Currently, AI chips account for less than $5bn of AMD’s sales, compared to Nvidia’s approximately $100bn figure. AMD sees the AI chip market being worth $400bn in 2027 and $500bn in 2028, so the prize is huge and execution looks good just now.
“AMD continues to take share from the likes of Intel, but doing the same to Nvidia will be a difficult nut to crack. AMD’s chip performance is as good as Nvidia’s for some applications so it is likely to cement itself as the second source for chips. For now, Nvidia remains the standard, but AMD will be content if it can just chip away slightly and try and get a bigger slice of the pie.”
