AMD CEO Lisa Su predicts that artificial intelligence (AI) will become essential across various sectors, estimating the AI accelerator market will grow to $400 billion by 2027.

To capitalize on this growth, AMD is set to release new AI chips, including the MI325 later this year, followed by the MI350 in 2025 and MI400 in 2026.

The competition between AMD and Nvidia has intensified, particularly in the AI sector, as AMD shifts its focus from flagship gaming GPUs to AI technologies.

She also discussed the semiconductor industry's dynamic nature, which thrives on both competition and collaboration among companies.

She urged patience with tech trends, reminding stakeholders that significant advancements in technology take years to develop, not just months.

Despite AMD's efforts, it currently holds a market cap of around $245 billion, significantly lower than Nvidia's impressive $2.9 trillion, highlighting Nvidia's first-mover advantage in the AI market.

As of mid-September, AMD's stock has risen by nearly 40% over the past year, although Nvidia's stock has outperformed with a surge of over 161%.

At the time of reporting, AMD's stock was trading 3.18% higher in pre-market, while Nvidia also saw an increase of 2.80%.

In an interview with CNBC, Su emphasized the necessity for diverse computing solutions, asserting that 'no one size fits all in computing'.

Su highlighted the importance of having the right compute architecture tailored for specific applications, crucial for advancing AI technologies.

Su also projected that sales for the MI300X AI chips could reach $4.5 billion in 2024, with a commitment to annual releases of new AI chips.