Advanced Micro Devices Declines Despite Launching New AI and Server Chips

Advanced Micro Devices (AMD) announced on Thursday its plans to increase production of the new artificial intelligence M1325X chip starting in the fourth quarter. This move aims to strengthen its market position against competitor Nvidia and capitalize on the rising demand for AI-related hardware.

The MI325X chip, built on the same architecture as the MI300X, incorporates a new type of memory designed to accelerate AI tasks, as revealed at AMD’s AI event in San Francisco.

Companies like Super Micro Computer are set to begin shipping AMD’s new AI chip to customers in the first quarter of 2025, a development that AMD believes will enhance its competitiveness against Nvidia’s Blackwell AI chips.

Looking ahead to late next year, AMD plans to introduce its next-generation MI2350 chips, which will be more powerful than the MI325 series due to improvements in memory and architecture.

Additionally, the company unveiled a new version of its server chip, previously known by the codename Turin.

Despite these developments, AMD shares struggled to recover and were down over 3% recently.