Advanced Micro Devices Inc. gave an upbeat revenue forecast for the current quarter, signaling that its new artificial intelligence processors are helping bolster growth.
Revenue will be roughly $6.7 billion in the third quarter, the chipmaker said in a statement Tuesday. Analysts estimated $6.62 billion on average, according to data compiled by Bloomberg.
The outlook suggests that AMD is making headway in its pursuit of Nvidia Corp., which dominates the market for so-called AI accelerators — chips used to develop artificial intelligence models. Nvidia has capitalized on booming demand to send its shares and stock price soaring over the past year, becoming the world’s most valuable chipmaker in the process. Now AMD is looking to make inroads with its own lineup, called MI300.
AMD is Nvidia’s nearest rival in the market, but still trailing by a wide margin. The hope is to gain more of the money that data-center operators such as Microsoft Corp. and Meta Platforms Inc. are pouring into the creation of AI tools.
AMD shares rose about 2% in extended trading following the announcement. They had earlier closed at $138.44 in New York, leaving them down 6.1% for the year.
AMD’s quarterly report kicks off a week of earnings updates from large semiconductor makers. Qualcomm Inc., Arm Holdings Plc and Intel Corp. all report numbers this week, and it comes at a delicate time for the chip industry. Investors have been selling shares of the companies after a dramatic run-up earlier this year.
Leave a Reply