AMD has forecasted $4 billion in sales of AI chips for 2024, marking an increase from the previously estimated $3.5 billion in January.
AMD's Q1 2024 Report
In the latest quarterly report, AMD reported anticipated revenue of approximately $5.7 billion, aligning with Wall Street's expectations and signaling a 6% annual growth trajectory.
According to CNBC, the company disclosed a net income of $123 million, or 7 cents per share, its revenue saw a 2% year-over-year increase, and its stock experienced a 14% increase in 2024.
A notable highlight was AMD's Data Center segment, which demonstrated remarkable growth of 80% year-over-year, reaching $2.3 billion in revenue.
This surge was primarily attributed to robust sales of AMD's MI300 series AI chips, directly competing with Nvidia's graphics processing units (GPUs).
AMD Sees Bright Future on AI Chips
AMD remains optimistic about its AI chip sales, expecting a significant increase to $4 billion in 2024. This forecast represents an upward revision from the previous estimate of $3.5 billion in January.
During the investor call, AMD's CEO, Lisa Su mentioned ongoing developments in new AI chip technologies and the progression toward next-generation products.
She also said that tech giants like Microsoft, Meta, and Oracle have been utilizing AMD's MI300X.
AMD shares have slumped 24% from their March peak despite rising 80% over the past year. After Nvidia's Blackwell chip announcement, chip stocks have fallen, and AMD shares are under pressure.
Analysts have also warned of a customer-order pushout for AMD due to high-bandwidth-memory undersupply.
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