According to AMD's Q3-2023 financial results call, the company anticipates that the Instinct MI300X accelerator will become the fastest-selling product in AMD's history, generating $1 billion in sales. This would mark the shortest time it took for a product to reach $1 billion in sales. With the MI300 series, AMD aims to enter the AI-driven HPC accelerator market, which is currently dominated by NVIDIA. This growth can be attributed to two main factors. Firstly, NVIDIA is facing supply constraints, leading customers to seek alternatives, and the MI300 series has emerged as a suitable option. Secondly, AMD has successfully developed a software ecosystem that complements the hardware, enhancing its appeal.
It is important to note that there are rumors suggesting that AMD will prioritize its foundry allocation for HPC accelerators like the MI300X, potentially sacrificing its market presence in the enthusiast-class gaming GPU segment with its next-generation products. HPC accelerators offer higher profit margins compared to gaming GPUs like the Radeon RX 7900 XTX. The RX 7900 XTX and its refresh under the RX 7950 series are not expected to have a successor in the RDNA4 generation. During the earnings call with analysts and investors, Dr. Lisa Su, CEO of AMD, stated, "We anticipate datacenter GPU revenue to reach approximately $400 million in the fourth quarter and exceed $2 billion in 2024 as revenue continues to grow throughout the year. This growth would establish the MI300 as the fastest product to reach $1 billion in sales in AMD's history."
