AMD Unveils New Products to Capture the Fast-Growing Market for AI Solutions
Nevertheless, the company's stock price fell—a decline that was likely due to the general weakness of the U.S. stock market, according to Emarketer analyst Jacob Born
AMD claims that its new Venice server CPU will maintain its lead over Nvidia's competing Vera model / Photo: Den Rozhnovsky / Shutterstock.com
At a product launch event for AI data centers in San Francisco on Thursday, AMD unveiled its first Helios AI server rack, the Venice server processor, and the Instinct MI455 AI chip. AMD is thus aiming to capture the rapidly growing market for AI computing solutions, which the company estimates will reach $2 trillion by 2030, according to Bloomberg. The company also announced a partnership with chipmaker Cerebras Systems. OpenAI confirmed its intention to purchase Helios servers “on a massive scale,” the agency notes. Nevertheless, AMD’s stock fell 2.3% during Thursday’s trading session.
What products did the company introduce?
— The Helios server rack—a benchmark design for data centers that server manufacturers can use in their own systems. A single rack can accommodate up to 72 AMD Instinct MI400 series accelerators. Analysts estimate that it will cost between $5 million and $5.5 million.
— The AMD Instinct MI455 graphics accelerator from the MI400 series.
— The new generation of AMD Epyc server processors, codenamed Venice. AMD claims that Venice will maintain its lead over the competing Nvidia Vera processor. A few days before AMD’s presentation, Nvidia unveiled the Vera processor and claimed that it is more powerful than the previous generation of Epyc processors.
— A joint solution from AMD and Cerebras Systems for fast inference—processing user queries and generating responses using AI models. In this solution, AMD Helios racks will process queries, while Cerebras servers will quickly deliver responses.
Why Did Stock Prices Fall?
AMD shares fell 2.3% to $539.7 during Thursday's trading session. The decline in the stock was likely due to the general weakness of the U.S. stock market and a sell-off in semiconductor stocks on July 23, according to Emarketer analyst Jacob Born, as quoted by Reuters.
AMD is trying to win market share from Nvidia in the rapidly growing data center chip segment, particularly in the area of inference—computations that take place when a user sends a request to a chatbot, such as OpenAI’s ChatGPT, Reuters reports.
According to AMD CEO Lisa Su, the company expects the total market for computing solutions to reach $2 trillion by 2030. Of this amount, $1.4 trillion will come from artificial intelligence accelerators (GPUs), and another $220 billion from central processing units (CPUs), a market where the company has long competed with Intel and, more recently, with Nvidia. According to AMD’s estimates, the size of this market was approximately $365 billion in 2025.
This article was AI-translated and verified by a human editor
