Advanced Micro Devices (AMD) beat Wall Street expectations with its third-quarter financial results and forecast $2 billion U.S. of artificial intelligence (A.I.) microchip sales in 2024.
AMD reported earnings per share (EPS) of $0.70 U.S. versus $0.68 U.S. that was expected by analysts.
Revenue in the quarter ended Sept. 30 totaled $5.8 billion U.S. compared to $5.7 billion U.S. that was expected. The company’s revenue rose 4% from $5.6 billion U.S. a year earlier.
Regarding forward guidance, AMD issued a soft outlook for the current fourth quarter of 2023, saying it expects $6.1 billion U.S. in microchip and semiconductor sales.
The Q4 guidance is below the consensus view of analysts who have called for revenue in this quarter of $6.37 billion U.S.
However, AMD’s forecast for 2024 looks stronger, with the company anticipating $2 billion U.S. in sales for its high-end graphics processing unit (GPU) microchips that are used to train and run generative A.I. applications.
The GPU microchip market is dominated by rival Nvidia (NVDA). However, AMD hopes to take market share with its powerful new MI300A and MI300X chips.
In an earnings call with media and analysts, AMD executives said that they expect GPU revenue to be $400 million U.S. in Q4 and approximately $2 billion U.S. in 2024.
As for the recently completed Q3, AMD’s data centre unit, which includes A.I. chips, reported $1.6 billion U.S. in sales, which was flat from a year earlier.
Revenue in the company’s client group, which includes microchip sales for personal computers (PCs) increased 42% year-over-year to $1.5 billion U.S.
Sales in the gaming segment declined 8% to $1.5 billion U.S. due to slowing sales of video game consoles worldwide.
AMD’s stock decreased 2% on news of the Q3 results. However, the company’s share price has increased 65% over the last 12 months to trade at $98.50 U.S.
Tech Insider
