Lisa Su, president and CEO of Advanced Micro Devices, speaks throughout a launch occasion in San Francisco on Aug. 7, 2019.
David Paul Morris | Bloomberg | Getty Images
AMD stock spiked more than 8% Wednesday, a day after the corporate beat top- and bottom-line earnings estimates and gave a promising 2024 forecast for its synthetic intelligence chip enterprise.
The chipmaker posted earnings per share of 70 cents, adjusted, narrowly beating the LSEG, previously Refinitiv, estimate of 68 cents per share. Revenue was additionally a slim beat, totaling $5.8 billion versus the $5.7 billion anticipated.
One remark appears to have excited Wall Street: AMD CEO Lisa Su stated Tuesday night that the corporate expects GPU income of about $400 million throughout the fourth quarter, and to prime $2 billion in 2024.
That forecast turned the stock round and helped it rally Wednesday.
Wall Street analysts like AMD’s prospects within the AI market, which is at present dominated by Nvidia. Still, AMD is considered one of solely a handful of corporations able to making high-powered graphics processing models that energy AI fashions.
“Upcoming MI300 accelerator is guided to $400mn gross sales in Q4E and $2bn+ in CY24E, with wholesome traction throughout hyperscalers, enterprises, OEMs, and AI startups,” Bank of America analysts stated in a be aware to buyers. AMD stated its new MI300A and MI300X GPUs are on monitor for quantity manufacturing throughout the fourth quarter of this yr.
Analysts at Raymond James lowered their worth goal from $145 to $125 however saved AMD as a “strong purchase” largely attributable to its AI enterprise.
“We are reducing our estimates however proceed to love the story attributable to long run AI/ML potential. AMD is off to a strong begin, and we see no purpose why the corporate cannot seize 10–20% share of the $100B+ AI accelerator market long term,” the Raymond James analysts stated.
Analysts at Jeffries echoed the identical sentiment towards AMD’s GPU enterprise.
“Perhaps one of the best information on the earnings name was that AMD now expects its datacenter GPU household (MI300) to ship for $2bn in revenues in 2024 (we imagine Street was at $1bn-$1.5bn), beginning at $400m in each 4Q23 (HPC) and in 1Q24 (inferencing + coaching),” wrote Jeffries analysts in an buyers’ be aware.
— CNBC’s Kif Leswing and Michael Bloom contributed to this report.
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