AMD expects solid year-end performance

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Advanced Micro Devices (AMD) expects a solid year-end performance, fueled by the expected release of artificial-intelligence (AI) processors that might compete with Nvidia semiconductors.

AMD CEO Lisa Su stated that manufacture of their flagship MI300 AI processors will begin in the fourth quarter. The accelerator chips, which are in short supply, are intended to compete with Nvidia’s powerful H100 CPUs. Investors on the other hand believe that the MI300 processors, which will be released later this year, will compete with Nvidia in the burgeoning market for sophisticated AI chips.

AMD has not provided a precise full-year prediction, although it has stated that sales in its data center business, including MI300 processors, are expected to surpass $6.04 billion in 2023. Jenny Hardy, portfolio manager at GP Bullhound, which holds Nvidia and AMD shares, stated that Nvidia is still facing supply limitations, allowing AMD’s processor to fill the gap.

“If AMD can ramp production and launch those MI300 chips in the fourth quarter, they will likely see strong demand because plenty of people cannot get their hands on Nvidia chips. So we would assume that AMD can effectively kind of fill some of that supply-demand gap,” Hardy said.

AMD has enough components for MI300 chips for an “aggressive” launch in the fourth quarter, and ample supply for 2024, Su said. The company forecast current-quarter revenue of about $5.7 billion, plus or minus $300 million. Analysts polled by Refinitiv on average expect revenue of $5.82 billion.

The sources for this piece include an article in Reuters.

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