AMD chief Lisa Xu predicted massive gains in AI and data center efficiency.

AMD chief Lisa Xu predicted massive gains in AI and data center efficiency.

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Advanced Micro Devices Inc (NASDAQ: AMD ) CEO Lisa Su emphasized the chip designer's progress toward its 30×25 goal, which aims to increase compute node power efficiency by 30x by 2025, and now predicts a potential 100x improvement by 2026-2027 at a recent event.

Su highlighted AMD's foresight in solving AI's power consumption issues from 2021 with a focus on improving data center power efficiency. He noted that the explosion of generative AI models like ChatGPT has fueled concerns about AI's power hunger, Tom's Hardware reports.

Also read: Nvidia's leading position challenged as industry giants support OpenAI's new developer software

AMD set its 30×25 target to improve data center performance, specifically targeting AI and HPC power consumption as key challenges.

Su explained that the rapid expansion of data centers, driven by advances in AI, is straining public power grids.

Su pointed out that the computing requirements for AI model training are growing at an unprecedented rate, outpacing advances in computing and memory technology.

To address these challenges, AMD uses a multi-pronged strategy that includes silicon advancements, AI-specific architectures, system-level tuning, and hardware-software co-design initiatives.

Su highlighted the role of 3nm gate all-round (GAA) transistors in improving power efficiency and performance, along with advanced packaging techniques to maximize compute-per-watt efficiency.

Su also emphasized the importance of data locality in reducing power consumption, citing AMD's MI300X chip as an example of efficient design.

Additionally, Su emphasized the benefits of hardware and software optimization, which significantly increases power efficiency and performance.

Recent reports have indicated this. Microsoft Corp (NASDAQ:MSFT) is considering integrating AMD's MI300X AI chips into Azure.

Recent reports have also flagged AMD gaining market share in the x86 processor market for the client and server categories.

Analysts highlighted AMD as the next most important beneficiary after AI. Nvidia Corp (NASDAQ:NVDA) made gains in the server CPU market and its successful capture of market share in the merchant accelerator sector.

AMD stock is up more than 48% over the past 12 months. Investors can gain exposure to stocks through this. Advisor Managed Portfolios Trenchless Fund ETF (NYSE:RVER) and REX FANG & Innovation Equity Premium Income ETF (NASDAQ: FEPI).

Price Actions: Shares of AMD traded up 3.18% at $165.53 at last check on Friday.

Also read: Analysts say Nvidia software centric shift and Blackwell transition set for steady gains

abandonment: This content was partially generated with the help of AI tools and reviewed and published by Benzinga editors.

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