This article first appeared on GuruFocus.
AMD (AMD, Financials) shares fell on Thursday after CEO Lisa Su confirmed key details about the company’s upcoming Instinct MI450 graphics chip, a highly anticipated GPU built for artificial intelligence workloads.
Su said in an interview that the MI450 will use TSMC’s 2-nanometer process for its main processor, the first time AMD has used the advanced technology. Other components of the chip, including media and interposer dies, will use 3nm technology, according to industry reports.
The MI450 will play a central role in AMD’s new partnership with OpenAI, which will use the chips in its AI data centers. As part of the deal, OpenAI will also acquire a 10% stake in AMD.
While the news underscores AMD’s growing presence in AI hardware, shares fell about 0.7% on Thursday. Even with the decline, AMD is still up more than 90% year to date, driven by growing GPU demand and the expanding AI market.