(Bloomberg) — Advanced Micro Devices Inc. said a new AI chip will generate $2 billion in sales next year, fueling optimism that demand for the component will offset a slump in orders for video-game equipment.
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The company’s MI300 processor, which will compete with Nvidia Corp. products in the market for artificial intelligence accelerators, is set to begin shipping in the coming weeks, AMD said during a post-earnings conference call Tuesday.
The chip has received strong early orders, including from large cloud computing customers. It should bring in $400 million in revenue this quarter, on the way toward generating $2 billion for the whole of 2024, AMD said. In fact, it’s on course to be the fastest-ever AMD product to reach $1 billion in sales, the company projected.
“We think the market is huge,” Chief Executive Officer Lisa Su said. “We’re playing…
