SANTA CLARA, Calif. - Advanced Micro Devices, Inc. (NASDAQ: NASDAQ:AMD) has announced that its AMD Instinct MI300X accelerators will be used by Oracle (NYSE:ORCL) Cloud Infrastructure (OCI) to power its latest BM.GPU.MI300X.8 Compute Supercluster instance. This new collaboration underscores AMD's growing presence in the cloud computing sector, particularly in AI-intensive applications.
The OCI Supercluster, equipped with the MI300X GPUs, can support up to 16,384 GPUs within a single cluster, leveraging a high-speed network fabric technology. This infrastructure is designed to handle complex AI workloads, including the inference and training of large language models (LLMs) that require substantial memory capacity and bandwidth.
One of the early adopters of the OCI's new offering is Fireworks AI, a company that specializes in building and deploying generative AI with a portfolio of over 100 models. The enhanced memory capacity of the AMD Instinct MI300X, paired with ROCm open software, has enabled Fireworks AI to scale its services effectively.
The AMD Instinct MI300X accelerators have undergone rigorous testing by OCI, demonstrating their capability to handle AI inferencing and training with low latency, even when dealing with large batch sizes. These tests have positioned the MI300X as a reliable option for AI model developers seeking to operate latency-sensitive use cases or fit large LLMs into a single node.
According to Andrew Dieckmann, AMD's corporate vice president and general manager of Data Center GPU Business, the collaboration with OCI is expected to offer customers high performance, efficiency, and flexibility in system design. Donald Lu, senior vice president of software development at OCI, highlighted the competitive price point and the variety of choices now available to customers looking to accelerate their AI workloads.
The partnership between AMD and OCI demonstrates a shared commitment to providing high-performance computing solutions for AI applications. The AMD Instinct MI300X's performance and OCI's infrastructure are poised to push the boundaries of AI workload acceleration. This information is based on a press release statement from AMD.
In other recent news, Micron Technology (NASDAQ:MU) has forecasted higher-than-expected first-quarter revenue, indicating a surge in demand for memory chips used in AI computing. This announcement has rekindled interest in AI among Wall Street investors. Furthermore, Advanced Micro Devices (AMD) has announced a significant event, Advancing AI 2024, scheduled for October 10, 2024, to reveal its latest AMD Instinct accelerators and 5th Gen AMD EPYC server processors.
Recent developments also include a Federal Reserve announcement of a half a percentage point cut to support the world's largest economy. Following this, growth stocks saw substantial premarket advances, with tech giants such as Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), and Alphabet (NASDAQ:GOOGL) each rising over 1.5%.
Goldman Sachs has maintained its Buy rating on shares of AMD, reflecting the firm's confidence in AMD's strategic initiatives and market position. AMD's Q2 revenues reached $5.835 billion, surpassing Street consensus by $110 million, with its data center segment showing a record revenue growth of 115% to $2.8 billion.
These recent developments indicate a positive outlook for AI and growth stocks, with companies like Micron Technology and AMD leading the way.
InvestingPro Insights
As Advanced Micro Devices, Inc. (AMD) continues to make significant strides in the cloud computing sector through partnerships like the one with Oracle Cloud Infrastructure, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, AMD boasts a substantial market capitalization of $262.26 billion, indicating its considerable size and influence in the technology industry. Despite a high price-to-earnings (P/E) ratio of 194.24, which suggests that the stock may be trading at a premium, AMD has shown a healthy revenue growth of 6.4% over the last twelve months as of Q2 2024. This growth is a testament to the company's ability to increase its sales in a competitive market.
InvestingPro Tips reveal that AMD is expected to grow its net income this year, which could further enhance its market position. However, it's worth noting that 25 analysts have revised their earnings estimates downwards for the upcoming period, which may indicate potential challenges ahead. Nonetheless, AMD's strong presence in the Semiconductors & Semiconductor Equipment industry and its high return over the last year, with a price total return of 68.84%, reflect a robust performance that may attract investors seeking growth opportunities.
For those interested in a deeper analysis of AMD's financials and market prospects, InvestingPro offers a comprehensive set of additional tips. There are currently 15 more InvestingPro Tips available, which provide valuable insights into the company's financial stability, valuation multiples, and profitability forecasts. These tips can be accessed through InvestingPro's dedicated AMD page at https://www.investing.com/pro/AMD, offering investors an edge in making informed decisions about their investments in the tech giant.
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