AMD is looking to focus on PCs in its AI chip battle with Nvidia

In football, they call it the “final end”.

The term describes a running play in which the ball carrier attempts to avoid being tackled by trying to outflank the defensive end.

Related: Analysts Reboot AMD Stock Price Targets Based on AI Market Outlook

If this works, you can spare yourself a lot of bumps and bruises

In the high-stakes AI game, Nvidia (NVDA) and advanced micro-devices (AMD) They face each other at the line of scrimmage.

Nvidia is currently leading the AI ​​competition. High sales of AI chips used in data centers have made it the most valuable public company, worth $3.4 trillion.

Dan Ives, an analyst at Wedbush, said that Nvidia, Apple and Microsoft will be at the forefront of the race to reach a market value of $4 trillion over the next year.

What about AMD?

Well, the chipmaker announced on Tuesday that Sun Singapore Systems Pte. Ltd, which it calls “Singapore’s largest smart parking solutions provider”, deploys a new AI-based smart parking solution powered by AMD Zynq UltraScale+ MPSoC hardware.

The system “improves the accuracy of vehicle license plate recognition and enables advanced features such as vacant parking spot detection, lane congestion, accident detection, and parking violation enforcement,” AMD said.

An increasing number of computers support artificial intelligence

Beyond that, AMD is looking beyond the headline-grabbing data center demand for cutting-edge AI chips, focusing on another aspect of the AI ​​market.

The Santa Clara, California-based company wants to carve out a significant portion of the market for artificially intelligent personal computers.

RELATED: AMD fires latest shot at Nvidia in AI chip war

A study released in January by technology market analysis firm Canalys predicted that 60% of computers shipped by 2027 will be able to use artificial intelligence, representing a “major shift in the technology landscape.”

“The emergence of AI-equipped PCs brings with it several key opportunities for industry players, including enhanced current and future hardware refresh cycles and the opportunity to meaningfully differentiate with innovative AI tools and ancillary services.” The report said.

Canalys said the future of AI will be hybrid.

While cloud-based AI tools drove the initial wave of interest and innovation, the study said the benefits of moving certain workloads to client devices quickly became apparent.

“Privacy and security become critical as businesses and consumers increasingly look to AI use cases that leverage models trained on enterprise and personal data,” Canales said.

AMD introduced its Ryzen AI 300 series processors with Neural Processing Units (NPUs) for next-generation AI PCs and next-generation AMD Ryzen 9000 series processors for desktop PCs at the recent Computex Taipai 2024 technology trade show.

Company described Ryzen AI 300 Series processors are “the ultimate choice for content creation laptops.”

The Ryzen brand is used for desktop, mobile, server, and embedded platforms based on the Zen microarchitecture.

AMD said early this year that Ryzen CPUs power more than 90% of Al-enabled PCs currently on the market.

AMD CEO Lisa Su: “We are excited about the growth of AI”

“We have expanded our portfolio of leading enterprise PC offerings with the launch of the Ryzen Pro 8000 processors earlier this month,” said Lisa Su, President and CEO, He told analysts in April.

“The Ryzen Pro 8040 mobile CPUs deliver industry-leading performance and battery life for business laptops, and the Ryzen Pro 8000 series desktop CPUs are the first processor to offer dedicated on-chip AI accelerators in business desktops,” she said.

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Su said AMD sees “clear opportunities to capture additional business PC share based on the performance and efficiency benefits of the Ryzen Pro portfolio and an expanded portfolio of AMD-powered business PCs from our OEM partners.”

“Looking ahead, we believe the market is on track to return to annual growth in 2024, driven by the start of the enterprise modernization cycle in adopting AI-powered PCs,” she said during the company’s first-quarter earnings call. “We see AI as the biggest inflection point in personal computers since the Internet with the potential to deliver unprecedented gains in productivity and ease of use.”

Su said the company is taking the next major step in its PC AI roadmap later this year with the launch of its next-generation Ryzen mobile processors codenamed Strix, which she said: “enables next-generation AI experiences in PCs.” Portable that is thinner and lighter. “And faster than ever.”

“We are excited about the growth opportunities in the PC market,” she added.

Stifel analyst Robin Roy, who has a buy rating on AMD stock with a $200 price target, recently discussed mixed sentiment on AMD stock.

He attributed this to several factors, including a wide range of assumptions for MI-series GPUs in 2025, concerns regarding the company’s competitive position in the AI ​​and PC computing markets, as well as the potential for continued pressure on the mainstream x86 server. Market, according to Pranks.

“However, we continue to believe that AMD is positioned to benefit from several growth drivers in the medium term including (i) investment in AI infrastructure, (ii) continued x86 CPU share gains, and ( iii) AI-based personal computer modernization cycle.” Roy said.

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