Call out NVIDIA Corporation (NVDA.US)! AMD (AMD.US) releases a new generation of AI chips and server products claiming performance superiority over competitors.

On Thursday, AMD (AMD.US) released a series of new products aimed at data centers, including a new generation of server processors, AI accelerators, and server architecture, claiming that many of the products will outperform competitor NVIDIA Corporation (NVDA.US) in the rapidly growing artificial intelligence (AI) computing market. At a product launch event in San Francisco, AMD introduced the new generation Epyc server processors, MI400 series AI accelerators, and the new Helios server rack design. The company stated that the new products are important upgrades to their existing product line and have a performance advantage over their competitors. AMD is showing increasing confidence in hopes of closing the gap with NVIDIA Corporation in the AI infrastructure sector. In recent years, NVIDIA Corporation has dominated the global AI data center construction with its GPU products, generating billions of dollars in revenue. AMD believes that as the demand for AI computing power continues to grow, both companies are accelerating the release of new generation chips with stronger performance. However, the reaction from the capital markets to this product launch has been relatively cautious. AMD's stock price dropped by about 3.5% during Thursday's trading. Prior to the event, the company's stock price had already doubled this year, showing that the market had high expectations for the new products. AMD expects that by 2030, the global AI accelerator market will grow to approximately $1.4 trillion; the traditional data center CPU market size will reach $220 billion. Overall, the company estimates that by 2030, its Total Addressable Market (TAM) will reach around $2 trillion. At the event, several tech company executives showed their support for AMD's new products, including leading AI model developers OpenAI and Anthropic. Of note was AMD's showcase of the new Helios server rack. This solution features an open design that can be produced and sold by server manufacturers, with each rack capable of accommodating up to 72 MI400 series AI accelerators. The MI455 model showed significant improvements in memory capacity, inference speed, and operating costs compared to the previous generation products. Sachin Katti, Head of OpenAI's networking platform, stated that as the demand for AI infrastructure continues to grow rapidly, the company plans to deploy Helios servers on a large scale. He said, "If you haven't heard enough yet, I need more computing power, and I need it fast." Moreover, AMD also announced a partnership with AI chip company Cerebras Systems (CBRS.US). The two companies will jointly launch AI infrastructure solutions that integrate Helios servers and Cerebras systems, targeting enterprise customers with high requirements for inference speed. Under the collaboration, AMD chips will handle processing and resolving user requests, while Cerebras' AI chips with large storage capacity will be responsible for quickly generating inference results. The solution will initially be deployed in the fourth quarter in Cerebras' own data centers before being made available to other AI enterprises. Boosted by the partnership news, Cerebras' stock price rose by 4.86% on Thursday. Andrew Feldman, CEO of Cerebras, stated that the product launch with AMD will precede NVIDIA Corporation's integration of similar solutions following their recent acquisition of Groq assets. He expressed confidence in entering the market first after developing the joint product for several months. Feldman said, "We are confident in being the first to enter the market. This is a product designed for customers who value response speed."