AMD’s AI chip exceeds sale expectations, as it reaches $1 billion last quarter

AMD has reported its financial results from the second quarter, telling investors that the Instinct MI300X GPUs account for over $1 billion of its data center revenues.

Unlike in previous years, nearly half of the company’s sales are related to data center products which is a huge shift for the business known for its semiconductors.

Throughout the full year, the accelerators are predicted to bring in over $4.5 billion, an increase from the $4 billion target announced in April. The data center side of the business has doubled in one year, with the growth in 2024 being due to its latest chip.

The Instinct MI300X GPU is the company’s alternative to Nvidia’s AI accelerator hardware. It was only launched in December 2023 and it’s supposed to beat its competitors in terms of floating-point performance, memory bandwidth, and capacity.

The sales from AMD’s Instinct chip amounts to over $1 billion in sales within a single quarter.

The AI focus wages on as AMD plan to release new chips every year

With figures soaring, it’s likely that Nvidia will continue to feel the heat as AMD is following in its footsteps. It was the Nvidia H100 that propelled the business into the stratosphere.

The technology company doesn’t just plan on stopping there though, as they have plans to release new AI chips every year. The MI325X will be released in the fourth quarter of 2024, the MI350 in 2025, and possibly the M1400 in 2026.

“We delivered strong revenue and earnings growth in the second quarter driven by record Data Center segment revenue,” said AMD Chair and CEO Dr. Lisa Su in the company press release.

“Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, EPYC and Ryzen processors.

“The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business.”

Image Credit: Via Ideogram