Advanced Micro Devices (AMD) will be reporting its Q3 earnings, and one of the key focuses will be the company's new MI300 artificial intelligence (AI) accelerator chip. The MI300 is seen as a competitor to Nvidia's H100 chip and is expected to be released in the fourth quarter. Currently, Nvidia dominates the market share for AI applications with its H100 chip, which helped make it the first trillion-dollar semiconductor company. The release of AMD's MI300 chip is seen as crucial for the direction of the stock.

During the earnings call, AMD CEO Lisa Su is expected to provide more details on the MI300 chip, as well as discuss how the company is navigating the personal computer and server chip markets. Demand for personal computers has been improving, but the server market still faces challenges due to inventory overhang.

AMD has seen its shares rise by 48% this year, outperforming the Philadelphia Semiconductor Index. However, it has not reached the highs seen in June when the market was extremely optimistic about AI. Intel's recent quarterly earnings report showed that while the PC market is improving, there are still challenges in the server market, where AMD has gained market share from Intel.

During the earnings conference call, CEO Lisa Su is likely to strike a balance between expressing excitement about the MI300 chip and managing expectations about its immediate impact on revenue. In a previous earnings call in August, the MI300 chip was mentioned around 40 times, but specific revenue targets were not provided. Analysts at Sanford C. Bernstein believe that while the MI300 will be a significant story for next year, real volume sales may not occur until the second half of the year.

In the AI chip market, where Nvidia is the leader, AMD is aiming to gain market share. Both companies are major providers of graphic chips for gaming PCs, and when optimized for data center work, these chips perform well in AI training workloads. AMD CEO Lisa Su has stated that the opportunity for chipmakers in AI systems is still in its early stages, and she predicts that the market for accelerators like the MI300 will reach $150 billion by 2027.