AMD Announces next-gen RDNA 4 GPU Launch, Aiming to Lead in AI Over Gaming
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Following through with a shift in its business strategy from the gaming industry, Advanced Micro Devices (AMD, Financial) has aimed to capture the fast-growing AI market by confirming the RDNA 4 GPUs for early 2025. In a Q3 2024 earnings call, AMD CEO Lisa Su stated that the company will soon release these new GPUs, which will offer improved gaming performance, and will feature better ray tracing and new AI features.
It also signals a change in focus by AMD from mainly using its products to drive gaming hardware to concentrate on AI endeavours, an overall trend among several segments of the computer industry for high-performance AI applications. It is seen as a direct follow-up to the changing requirements of AMD's now predominant data center customer base, which accounts for more than 50% of its overall revenues. Su also pointed to how games, contributing to only 2% of AMD's overall revenues, are now a much lesser concern for the company as the mainstream focus shifts towards AI technologies.
The next RDNA 4 series may be launched at CES 2025, combined with the growth of other products, such as the Ryzen Z2 handheld gaming chips and gaming notebook parts. Of course, this lineup shows that AMD stays in the gaming market, but it is not its priority.
This way, AMD would become one of the market leaders in the AI sector and leave the market battle with Nvidia's prime GPUs for consumers behind. The shift to focus on AI and data centers is to tap into the high-growth areas where AMD will place the firm as a leading and strategic provider of AI solutions in the technology sector.
This article first appeared on GuruFocus.