AMD raised its revenue forecast for AI chips by $1.5 billion, but investors are still not getting enough

by alex

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AMD повысила прогноз дохода с ИИ-чипов на $1,5 млрд, но инвесторам все-равно мало

AMD повысила прогноз дохода с ИИ-чипов на $1,5 млрд, но инвесторам все-равно мало

AMD raised its 2024 revenue forecast for its artificial intelligence processors ( AI) by $1.5 billion. Investors were looking for more: A nearly doubling of AI processor sales forecast to $3.5 billion was not enough to meet Wall Street's lofty forecasts for the company's AI fortunes and mitigate the impact of a significant decline its traditional chip and video game businesses.

The company also forecast that its first-quarter earnings would be below Wall Street estimates, Reuters reports.

AMD delivered disappointing results this quarter, with notable declines in operating profit and operating margin. The company had little room for error amid high expectations, and investors were disappointed with the guidance provided for the current quarter.

— Investing.com analyst Jesse Cohn.

For the current quarter, AMD management forecast revenue of $5.4 billion, give or take $300 million, compared with the average analyst estimate of $5.73 billion. The company did not issue earnings per share guidance.< /p>

Advanced Micro Devices shares are up about 140% over the past year, outperforming the benchmark PHLX Semiconductor Index by nearly 90 percentage points. But shares of the Santa Clara, California-based company fell about 6% after the results were announced.

AMD Chief Executive Officer Lisa Su said during a conference call that the company could sell more than $3.5 billion in artificial intelligence chips once additional capacity comes online in the second half of the year.

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But analysts have previously given forecasts for the AI ​​segment in the range of $4 billion to $8 billion, and the stock's valuation is tied to those numbers, according to Summit Insights analyst Kingai Chan.

AMD's data center segment, which covers traditional server chips as well as AI processors, grew 38% year-over-year to $2.3 billion, but demand on the part of cloud computing companies remained “soft”,

— Su said during the conference call.

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As companies look to develop and operate their own generative AI applications, enterprise budgets are being directed toward the processors involved. Businesses large and small are looking for alternatives to cutting-edge AI chips made by Nvidia, which has about 80% of the market. AMD has one of the few viable alternative products on the market.

The Technology section is published with the support of Favbet Tech

AMD повысила прогноз дохода с ИИ-чипов на $1,5 млрд, но инвесторам все-равно мало

AMD повысила прогноз дохода с ИИ-чипов на $1,5 млрд, но инвесторам все-равно мало

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