[Update] AMD MI300X AI Accelerator Demand Is “Soft” According To Analyst, MI350X Refresh Might Move To 2026 Launch

AMD is reportedly facing "Soft" demand for its latest MI300X AI accelerator which might also push the refreshed MI350X back to 2026.

Update [5/31/2024] - An AMD spokesperson reached out to us and confirmed that the statement from Braid regarding the MI300X demand isn't correct and it is based on information from 3rd party suppliers, not Samsung. You can read the full quote below:

"The recent report from Baird regarding Instinct MI300X demand is inaccurate. The analyst has falsely attributed statements to Samsung that were actually from unnamed third party suppliers. Our engagements with Samsung and our other HBM suppliers are progressing as planned. We continue making strong progress ramping our MI300X products and remain on track to deliver more than $4 billion of data center GPU revenue in 2024."

AMD Spokesperson to Wccftech

When we talk about NVIDIA and their AI fortunes, we always keep AMD in parallel and infer why they haven't been able to replicate NVIDIA's success. For starters, their late entry into the AI markets is one solid reason.

AMD debuted in the AI market with their new Instinct MI300 series much later than NVIDIA's counterparts, which gave NVIDIA an apparent leverage here which had the technology ready since its Volta V100 GPUs back in 2017. We won't dive much into the computing power figures since that is another debate. Still, an interesting analysis has been made by Baird, a financial management firm, which directly cites Samsung, which claims that AMD looks way behind its rivals regarding its AI accelerator release schedule.

Baird met with Samsung and they have a pretty interesting find on $AMD.

The fact that they might not be able to ramp up Mi350x before '26 is pretty bad - $NVDA will be on a next gen chip after Blackwell by then.

Lisa Su will deliver a speech on COMPUTEX 2024 on Sunday and… pic.twitter.com/AOLR038ayc

— Scrooge McDuck (@ScroogeCap) May 29, 2024

Samsung hasn't expressed much confidence in AMD's AI products, claiming that the demand for their Instinct MI300X AI accelerators is at an all-time low, and with that, Team Red decided to reduce their HBM orders months ago as well. Moreover, the Korean giant can validate this fact simply because the firm manages most of AMD's HBM supply and is aware of the demand-supply ratios. Well, this certainly isn't looking good for Team Red out there, and despite the Instinct MI300X being their top-performing product in the markets, it hasn't managed to sustain the hype.

Apart from this, Samsung also claims that AMD is under fire when it comes to next-gen releases since the Korean giant points out that it doesn't expect Team Red to "ramp up" the production of their Instinct MI350 accelerators until H1 2026, which is yet again a massive development for the future of AMD, considering that rivals like NVIDIA already look to switch to the generation post-Blackwell by 2026. With AMD stuck with its MI300 series, the generational gap will widen more than ever, making it difficult for the firm to come back.

We expect things to be more transparent with AMD's CEO Lisa Su's Computex 2024 keynote since the firm is expected to unveil its AI roadmap. Overall, it's safe to say that NVIDIA's throne looks unchallenged unless AMD decides to do something extraordinary.

News Source: @ScroogeCap