Advanced Micro Devices Inc‘s (NASDAQ:AMD) Data Center Group recently shared insights at the UBS Annual Technology Conference.

According to the company’s EVP and GM, Forrest Norrod, the upcoming “Advancing AI” event on Dec. 6 will focus on the MI300.

The bet is that MI300 will position AMD as a credible alternative for generative AI and large-scale AI systems.

AMD’s MI300: Norrod outlined the strategic approach, emphasizing the MI300’s variants set to launch formally at the upcoming event. This move signifies a significant milestone in AMD’s journey. With MI300, AMD seeks to establish itself as a robust contender in the AI space.

On the AI front, Norrod expects extraordinary interest levels over the next 24 to 36 months, with sequential growth anticipated in each quarter. He reiterated that AMD’s MI300 revenue should exceed $2 billion in the next year.

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Addressing concerns about the cannibalization of general compute TAM by AI, Norrod did acknowledge short-term challenges. However, he also stressed on the long-term additive nature of AI capabilities to existing workloads.

AMD’s Business, Partnerships and Operating Margins: Nod.ai and Mipsology are “great additions” on the software front for AMD, acknowledged Norrod. The central thrust of AMD’s software efforts currently revolves around partnerships with hyperscalers, open-source initiatives, and minimizing friction for AMD adoption.

AMD has an ambition for a 30% plus operating margin over time. AMD’s heavy investment cycle is part of the company’s anticipated growth in AI and other sectors, Norrod says.

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