Posted 2/16/2024, 4:31:00 PM
AMD Launches Lower-Priced AI Chips to Challenge Nvidia's Dominance, Raises Revenue Forecasts on Strong Demand
- Nvidia dominates the AI chip market, but AMD launched new lower-priced chips to compete
- AMD's AI chips are selling for $10k-$15k vs Nvidia's $30k-$40k, undercutting on price
- AMD originally forecasted $2B in AI chip revenue in 2024 but raised it to $3.5B on strong demand
- Citi analyst estimates AMD could hit $5B in AI chip revenue in 2024 and $8B in 2025
- If AMD hits higher AI chip sales, its 2024 revenue could jump 20% and stock could approach Street-high $270 12-month price target