At its recent AI event, Advanced Micro Devices (NASDAQ: AMD) fired shots and claimed supremacy in AI inference above AI system pioneer and leader Nvidia (NASDAQ: NVDA). AMD stock has been in rally mode as investors ratchet up their expectations in 2024 for the scrappy chip designer.

Nvidia fired back, though, dousing AMD's claims with a full bucket of cold water. What are investors to make of these "AI chip supremacy" claims, and is there a simple way for investors to measure real AI business performance?

In a previous article, I cited AMD's claim that its newest AI system, the upcoming MI300X, outperforms the competition in AI inference by 1.4x to 1.6x. AI inference is computing work after an AI model has been trained, and users begin using the model for answers to questions or performing some other task.

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Source Fool.com