{"id":13112,"date":"2024-05-01T12:35:08","date_gmt":"2024-05-01T09:35:08","guid":{"rendered":"https:\/\/forklog.com\/en\/amd-targets-4-billion-in-ai-chip-sales-by-year-end\/"},"modified":"2024-05-01T12:35:08","modified_gmt":"2024-05-01T09:35:08","slug":"amd-targets-4-billion-in-ai-chip-sales-by-year-end","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/amd-targets-4-billion-in-ai-chip-sales-by-year-end\/","title":{"rendered":"AMD Targets $4 Billion in AI Chip Sales by Year-End"},"content":{"rendered":"

By the end of 2024, AMD aims to generate $4 billion in revenue from the sale of artificial intelligence chips.<\/p>\n

In its first-quarter report, the company noted<\/a> that its data center segment grew by 80% year-on-year, reaching $2.3 billion. This growth was driven by sales of its MI300 series AI chips, which compete with Nvidia’s graphics processors.<\/p>\n

AMD’s CEO, Lisa Su, stated that clients such as Microsoft, Meta, and Oracle are utilizing AMD’s MI300X. Since their launch in the fourth quarter of 2023, these accelerators have generated $1 billion in revenue.<\/p>\n

AMD expects AI chip sales to reach $4 billion in 2024, surpassing its January forecast of $3.5 billion. In comparison, Nvidia, the largest supplier of server chips, reported $18.4 billion in sales in the data center segment in its latest financial report.<\/p>\n

Su informed investors that the company is developing new AI chips and successors to the current generation.\u00a0<\/p>\n

\n

\u201cWe are getting much closer to our leading AI customers. They are effectively giving us significant feedback on our roadmap,\u201d said the head of AMD.<\/p>\n<\/blockquote>\n

The company also produces central processing units, often used alongside advanced AI chips in servers. According to Su, AMD has gained market share in this segment, likely at Intel’s expense.<\/p>\n

She noted \u201csigns of improving demand\u201d for the company’s processors due to the AI server boom.<\/p>\n

AMD’s Financial Performance Exceeds Analyst Expectations<\/h2>\n

In the first quarter of 2024, AMD’s revenue reached $5.47 billion, slightly above the LSEG consensus forecast of $5.46 billion and 2% higher than the same reporting period last year. The company’s profit was $123 million, compared to a loss of $139 million a year earlier.<\/p>\n

For the current quarter, AMD expects sales of $5.7 billion, aligning with analyst forecasts. This represents a growth of approximately 6% year-on-year.<\/p>\n

AMD’s weakest division was its gaming segment, which declined by 48% year-on-year to $922 million, below forecasts of $969 million. The company attributed this to a drop in chip sales for gaming consoles and PCs.<\/p>\n

AMD’s core business\u2014processors for chips and PCs\u2014reported sales of $1.4 billion, up 85% from last year, which may indicate a market recovery following last year’s downturn.<\/p>\n

The company’s embedded segment, comprising Xilinx products, reported a 46% drop in sales to $846 million, below analyst expectations of $942 million.<\/p>\n

Despite a generally profitable quarter and strong forecasts, AMD shares fell by 7% in after-hours trading on April 30.<\/p>\n

In April, Microsoft reported a shortage of cloud infrastructure for AI<\/a> despite a 79% increase in capital expenditures.<\/p>\n","protected":false},"excerpt":{"rendered":"

By the end of 2024, AMD aims to generate $4 billion in revenue from the sale of artificial intelligence chips. In its first-quarter report, the company noted that its data center segment grew by 80% year-on-year, reaching $2.3 billion. This growth was driven by sales of its MI300 series AI chips, which compete with Nvidia’s […]<\/p>\n","protected":false},"author":1,"featured_media":13111,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1404,438,1295],"class_list":["post-13112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-amd","tag-artificial-intelligence","tag-chips"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/13112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=13112"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/13112\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/13111"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=13112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=13112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=13112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}