Advanced Micro Devices stock falls 5% despite unveiling new AI, server chips

Investing.com -- Advanced Micro Devices detailed plans Thursday to ramp production of its new artificial intelligence M1325X chip starting in the fourth quarter as the chipmaker looks to take the fight to rival Nvidia (NASDAQ:NVDA ) and cash into an increasing wave of enterprising spending on AI-related hardware.   

The MI325X chip, which is powered by the same architecture that is available MI300X, features a new variation of memory that will speed AI-related tasks, AMD said at its AI event in San Francisco. 

Vendors including Super Micro Computer (NASDAQ:SMCI ) would begin shipping AMD's new AI chip, which the chipmaker hopes will help it compete with Nvidia's Blackwell AI chips, to customers in Q1 2025. 

Looking ahead to the second half of next year, AMD said plans to launch its next-gen MI2350 chips that will be more powerful that the MI325 series chips as it performance will be enhanced by increased memory and new architecture. 

The company also launched a new version of its server chip, which were formerly codenamed Turin.  

Advanced Micro Devices Inc (NASDAQ:AMD ) shares, however, failed to cut losses and were recently down more than 3%. 

Source: Investing.com