AMD, the renowned semiconductor company, is expecting a robust performance in the fourth quarter, backed by a strong market demand for artificial intelligence (AI) hardware. The company aims to challenge its competitor, Nvidia, by introducing its own AI chips in the same quarter.
AMD CEO Lisa Su revealed that the company has witnessed a significant surge in AI engagements, which have increased by over seven times in the previous quarter. Multiple customers have initiated or expanded their programs to support future deployments of AMD’s Instinct accelerators at a large scale. This indicates a growing interest and demand for AI hardware.
Industry experts believe that the spending on data centers by major cloud players like Microsoft and Google will predominantly focus on AI chips and infrastructure in the second half of this year. This forecast aligns with AMD’s plans to introduce its AI chips, as the demand for such technology continues to grow.
While AMD’s competitor, Nvidia, currently dominates the AI chip market, AMD aims to challenge its position with its own offering. However, these chips will not be available in the market until the fourth quarter of this year.
On another note, AMD’s PC shipments have experienced a decline, but the company is optimistic as demand is showing signs of improvement. Jean Hu, the finance chief of AMD, anticipates double-digit sequential growth in both data center and client segment revenues for the third quarter due to increasing demand for the company’s EPYC and Ryzen processors. This growth is expected to offset declines in the Gaming and Embedded segments.
For the current quarter, AMD has forecasted a revenue of approximately $5.7 billion, with a margin of plus or minus $300 million. Analysts, however, anticipate a slightly higher revenue of $5.82 billion.
To summarize, AMD is optimistic about its performance in the coming months and aims to challenge Nvidia’s dominance in the AI chip market. With increasing AI engagements and demand for their products, the company expects strong growth in the data center and client segments. Despite a decline in PC shipments, AMD remains positive as demand shows signs of improvement.
