AMD predicts a robust Q4 with the release of their AI chip.
AMD predicts a robust Q4 with the release of their AI chip.
AMD Forecasts Strong Fourth Quarter with AI Hardware Challenge to Nvidia
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In a promising development for Advanced Micro Devices (AMD), the semiconductor giant has forecast a robust fourth quarter and announced plans to introduce artificial intelligence (AI) hardware that can rival Nvidia chips by that time. The news has sent the company’s shares soaring by almost 5% in after-hours trading, indicating investor confidence in AMD’s potential for success.
The expansion of AMD’s AI engagements by more than sevenfold in the quarter has been touted by the company’s CEO, Lisa Su. Multiple customers have initiated or expanded programs to leverage Instinct accelerators at scale for future deployments. Analysts predict a significant increase in spending on data centers by major cloud players like Microsoft and Google in the second half of the year, with a greater focus on AI chips and infrastructure. This bodes well for AMD, as its AI competitor to Nvidia’s chips is expected to debut in the fourth quarter of this year.
While AMD’s AI chips are yet to hit the market, the company has witnessed a moderation in the decline of PC shipments and a marked improvement in demand. Jean Hu, AMD’s finance chief, projected a double-digit percentage growth in the Data Center and Client segment revenues for the third quarter. This surge is anticipated to be driven by the increasing demand for EPYC and Ryzen processors. However, the growth is expected to be partially offset by declines in the Gaming and Embedded segments.
AMD’s forecast for the current quarter is approximately $5.7 billion in revenue, with potential variability of plus or minus $300 million. Analysts polled by Refinitiv have predicted a slightly higher revenue figure of $5.82 billion. Despite this discrepancy, the overall outlook for AMD remains positive.
With the impending release of its AI hardware and the growing demand for its processors, AMD is set to bolster its position in the technology market. The competition between AMD and Nvidia in the AI space will undoubtedly fuel innovation and advancements in AI technology, benefitting both companies and pushing them to deliver cutting-edge solutions.
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Ultimately, the consumer stands to gain the most from this healthy rivalry. As AMD continues to make strides in developing AI hardware and meeting market demands, it will contribute to the ongoing evolution of technology and pave the way for a more AI-driven future.
In summary, AMD’s positive fourth-quarter forecast, coupled with its plans to challenge Nvidia in the AI hardware market, indicates a promising future for the semiconductor company. With the demand for AI chips on the rise, and the projected growth in revenue from its Data Center and Client segments, AMD is poised for continued success. The evolving competition between AMD and Nvidia will push the boundaries of AI technology and drive innovation in the industry. As a result, consumers can look forward to a future filled with AI-driven advancements and possibilities.
