AMD expects to sell $2bn worth of artificial intelligence chips next year

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AMD beat analysts' earnings expectations for the third quarter of 2023, but gave a weak outlook for the next three months. That said, the chipmaker expects a strong increase in sales of processors for artificial intelligence.

Here's What We Know

AMD reported third-quarter revenue of $5.8 billion, compared to the consensus forecast of $5.7 billion. For the fourth quarter, the company expects revenue of $6.1 billion, while analysts forecast $6.37 billion.

AMD's net income rose to $299 million in the third quarter, up from $66 million a year earlier. Data centre processor sales remained flat year-on-year, with an increase in server CPU sales.

Revenues from PC chips grew 42% to $1.5bn, with sales in the embedded segment down 5% due to a weak telecom equipment market, and in the gaming segment down 8% as demand for semi-custom chips for game consoles fell.

AMD is one of the few manufacturers capable of producing high-performance GPUs for training and deploying artificial intelligence models. The company expects to begin production of its specialised MI300A and MI300X AI chips as early as this quarter.

The company's stock declined after the report but recovered due to AMD's optimistic 2024 outlook for its artificial intelligence processor business.

The company expects data centre GPU revenue of about $400 million in the fourth quarter and more than $2 billion next year.

Source: CNBC