This article first appeared on GuruFocus.
AMD (AMD, Financials) shares edged lower Thursday after CEO Lisa Su confirmed key details about the company’s upcoming Instinct MI450 graphics chip, a highly anticipated GPU built for artificial intelligence workloads.
Su said in an interview that the MI450 will use TSMC’s 2-nanometer process for its main compute die the first time AMD has used the advanced technology. Other components of the chip, including the media and interposer dies, will use 3nm tech, according to industry reports.
The MI450 will play a central role in AMD’s new partnership with OpenAI, which will use the chips in its AI data centers. As part of the deal, OpenAI will also take a 10% ownership stake in AMD.
While the news underscores AMD’s growing presence in AI hardware, the stock slipped about 0.7% Thursday. Even with the dip, AMD remains up more than 90% year to date, driven by surging demand for GPUs and the expanding AI market.
