ETFs
AMD-Nvidia ETFs in focus amid new chip introductions
Advanced microsystems AMD recently showcased its latest artificial intelligence (AI) processors at the Computex technology show in Taipei. CEO Lisa Su introduced the MI325X accelerator, which is scheduled for release in the fourth quarter of 2024. The move is part of AMD’s strategic plan to challenge the industry leader. Nvidia NVDA in the competitive AI semiconductor market.
Meanwhile, Nvidia also revealed its next generation of AI chips – Rubin, which features 8 HBM4 memory stacks. The platform, available in 2026, includes new GPUs for AI training and deployment, as well as a central processor named “Vera”.
Growing demand for AI chips
The rise of generative AI programs has created high demand for advanced chips used in AI data centers. California-based AMD is working to compete with Nvidia, which currently dominates about 80% of the AI semiconductor market.
Following Nvidia’s lead, AMD announced plans to release new AI chips on an annual basis. Nvidia has also committed to releasing new models of AI chips every year. The Rubin AI platform will use HBM4 memory, with Rubin Ultra including 12 HBM4 stacks. In particular, Nvidia’s accelerated computing technology enables significant cost and energy savings.
Meanwhile, AMD introduced the MI350 series, expected in 2025, promising a 35x improvement in inference performance over the current MI300 series. Additionally, the MI400 series, based on a new architecture called “Next”, is expected to be launched in 2026.
AMD also announced that its latest generation of central processing units (CPUs) will be available in the second half of 2024. While AI chips are prioritized for data centers, some CPUs are used alongside graphics processing units (GPUs). ), with a higher GPU ratio, cited by Reuters.
Investor interest and market performance
Investors are closely watching AMD and Nvidia for long-term updates on AI chip developments. AMD shares have more than doubled since the start of 2023, although that growth is modest compared to Nvidia’s seven-fold increase over the same period. AMD projects AI chip sales of around $4 billion for 2024, an increase of $500 million from previous estimates.
Tap Both Companies With These ETFs
Investors can access both chipmakers through a single investment. This includes ETFs like Strive US Semiconductor ETF SHOCK, AXS Esoterica NextG Economy ETF WUGI, Invesco PHLX Semiconductor ETF SOXQ and TrueShares Technology, AI & Deep Learning ETF LRNZ.
AMD has approximately 7.23% exposure to SHOC, 6.57% to WUGI, 6.31% to SOXQ, and 6.11% to LRNZ. In contrast, NVDA has approximately 31% exposure to SHOC and WUGI, 15.27% to SOXQ and 16.57% to LRNZ.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
TrueShares Technology, AI & Deep Learning ETF (LRNZ): ETF Research Reports
AXS Esoterica NextG Economy ETF (WUGI): ETF Research Reports
Invesco PHLX Semiconductor ETF (SOXQ): ETF Research Reports
Strive US Semiconductor ETF (SHOC): ETF Research Reports