AMD Raises AI Chip Sales Forecast to $4.5 Billion, Boosting Stock -- WSJ
By Asa Fitch
Advanced Micro Devices Chief Executive Lisa Su projected $4.5 billion of sales this year for the company's artificial intelligence chips, signaling still-robust AI demand and putting growing competitive pressure on the market leader Nvidia.
AMD shares rose nearly 9% in after-hours trading following the updated forecast and a set of quarterly results that exceeded analyst forecasts.
The AI boom has given AMD a major lift--although it remains far behind Nvidia, which analysts estimate has a market share of more than 80% in AI chips. Nvidia's chips have been the workhorses of the AI boom, essential tools in the high-stakes race to make the most sophisticated text- and image-generation systems.
But AMD's latest generation of AI chips, called the MI300, have attracted growing interest. In April, Su raised her forecast for overall AI chip sales to $4 billion this year, from an earlier projection of $3.5 billion.
The company, which reported second-quarter results on Tuesday, said revenue for the period was $5.8 billion, up 9% from the prior year and ahead of estimates in a FactSet analyst poll. It forecast around $6.7 billion of total sales for its current quarter, also ahead of estimates.
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