By the end of 2024, AMD plans to make a profit from the sale of chips for artificial intelligence in the amount of $ 4 billion.
In a report for the first quarter, the company indicated that the data center segment grew by 80% year-on-year, to $2.3 billion. This was due to sales of MI300 series AI chips, which compete with Nvidia GPUs.
Lisa Su, CEO of the company, said that customers like Microsoft, Meta and Oracle use AMD's MI300X. Since its launch in the fourth quarter of 2023, these accelerators have generated revenue of $1 billion.
AMD expects revenue from AI chips to reach $4 billion in 2024, compared with a January forecast of $3.5 billion. By comparison, Nvidia, the largest supplier of server chips, reported sales of $18.4 billion in the data center segment alone in its latest financial report.
Su told investors that the company is working on new AI chips and successors to the current generation.
"We are getting much closer to our leading AI customers. They actually give us significant feedback on the roadmap," said the head of AMD.
The company also manufactures central processing units, which are often used in conjunction with advanced AI chips in servers. According to Su, AMD has won back market share in this segment, probably from Intel.
She noted "signs of improved demand" for the company's processors due to the boom in AI servers.
https://forklog.com/exclusive/ai/ii-chipy-v-2024-godu-na-chto-sem-altman-predlagaet-tratit-trillionyAMD's financial performance exceeded analysts' expectations
In the first quarter of 2024, AMD's revenue amounted to $5.47 billion, which is slightly higher than the LSEG consensus forecast of $5.46 billion and 2% more than in the same reporting period. The company's profit reached $123 million compared with a loss of $139 million a year earlier.
AMD expects sales of $5.7 billion in the current quarter, which is in line with analysts' forecasts. This means an increase of about 6% year-on-year.
AMD's weakest division was the gaming segment, which declined 48% year-on-year to $922 million, below forecasts of $969 million. According to the company, this is due to a decrease in sales of chips for gaming consoles and PCs.
AMD's core business — processors for chips and PCs — reported sales of $1.4 billion. This is 85% more than last year, which may indicate a market recovery after last year's recession.
The company's embedded segment, consisting of Xilinx products, reported a 46% drop in sales to $846 million. This is below analysts' expectations of $942 million.
Despite an overall profitable quarter and strong forecasts, AMD shares fell 7% in extended trading on April 30.
Recall that in April, Microsoft reported a shortage of cloud infrastructure for AI, despite a 79% increase in capital expenditures.