The Technology section is powered by Favbet Tech
AMD raised its 2024 forecast for revenue from its artificial intelligence (AI) processors to $1.5 billion. Investors wanted more: A near-doubling of its AI processor sales forecast to $3.5 billion wasn’t enough to meet Wall Street’s lofty forecasts. on the company’s state of artificial intelligence and to mitigate the effects of a significant decline in its traditional chip and video game businesses.
The company also forecast its first-quarter revenue to come in below Wall Street estimates, Reuters reports.
AMD had a disappointing performance this quarter, with a marked decrease in operating profit and operating margin. The company had room for error amid high expectations, and investors were disappointed by the guidance provided for the current quarter.
– Investing.com analyst Jesse Kohn.
For the current quarter, AMD’s management is forecasting revenue of $5.4 billion, plus or minus $300 million compared to the average analyst estimate of $5.73 billion. The company did not issue an earnings per share forecast.
Shares of Advanced Micro Devices are up about 140% over the past year, outperforming the underlying PHLX Semiconductor Index by nearly 90 percentage points. But shares of the Santa Clara, Calif.-headquartered company fell about 6% after the results were announced.
AMD Chief Executive Officer Lisa Su said on a conference call that the company could sell more than $3.5 billion worth of artificial intelligence chips once additional capacity comes online in the second half of the year.
But analysts had previously given forecasts for the II segment in the range of $4 billion to $8 billion, and the stock’s valuation is tied to those figures, according to Summit Insights analyst Kingai Chan.
AMD’s data center segment, which includes traditional server chips as well as artificial intelligence processors, grew 38% from a year ago to $2.3 billion, but demand from cloud computing companies remained soft.
Su said during a conference call.
As companies seek to develop and operate their own applications with generative AI, corporate budgets are directed towards the appropriate processors. Businesses large and small are looking for alternatives to advanced AI chips manufactured by Nvidia, which occupies about 80% of the market. AMD has one of the few viable alternatives on the market.
The Technology section is powered by Favbet Tech
Favbet Tech is an IT company with 100% Ukrainian DNA, which creates perfect services for iGaming and Betting using advanced technologies and provides access to them. Favbet Tech develops innovative software through a complex multi-component platform capable of withstanding huge loads and creating a unique experience for players. The IT company is part of the FAVBET group of companies.
