It is generally accepted that in the segment of components for artificial intelligence systems, the boss is NVIDIA, which has long been dealing with the topic of accelerating calculations, but analysts MorganStanley We urge not to underestimate the potential of AMD’s core business. In the next year alone, they believe the company will be able to win in the AI segment from $400 million to $1.2 billion.
According to analysts, they originally expected core revenue of $100 million, excluding AMD’s total revenue from the sale of products in the cloud segment, but consultations with supply chain participants forced them to raise that forecast by at least four times. In addition, AMD is financially supported by the pricing policy of the Instinct MI300 accelerators it supplies. Where previous Morgan Stanley representatives believed they would ship at a price well below $10,000, there is now reason to believe that the average selling price will not fall below that mark.
According to the source, AMD is even ready to easily adapt these accelerators to the needs of large customers, which will certainly encourage them to buy this branded product. According to analysts, at least two “hyperscalers” of the big four will be interested in AMD’s proposals in this area: Amazon, Google, Microsoft and Meta* platforms. It is possible that large orders will also come from the third major player in this market. Mass shipments of the Instinct MI300 accelerators will begin in the fourth quarter of this year, so AMD won’t start generating revenue until next year.
* It is included in the list of public associations and religious organizations for which the court made a final decision to dissolve or prohibit activities on the grounds provided for in Federal Law No. 114-FZ of July 25. 2002 “On Countering Extremist Activities”.