AMD financials short of high expectations, but it sees $4bn of AI chip sales in 2024
Microchip maker AMD saw its shares drop as an 80% jump in datacenter revenue wasn't enough to offset what was otherwise a disappointing set of financial results.
First-quarter earnings for 2024 were well short of what Wall Street commentators now call "high expectations".
AMD's datacenter chips performed well, with revenues up 80% to $2.4 billion driven by strong demand thanks to AI cloud computing.
At the same time, however, the gaming segment experienced a 48% decline in revenue, to $922 million, whilst its embedded chip segment similarly saw a decrease of 46%, to $846 million.
AMD, in its investor communications, said it expects to launch its "Turin" Epyc processor and new GPUs later this year with the new products intended to enhance the firm's edge in the competitive data center market.
It is forecasting $4 billion in AI chip sales for 2024.
Explore Bias:
Financial media reporting emphasized the disappointment and negative stock market reaction to the news whilst acknowledging the previously high market expectations for AI-related growth.
The narrative meanwhile tend to focus on the competition between rivals like Intel and Nvidia, which is a more complex story.
Most media outlets discuss the financial result in the context of the proliferation AI, albeit much of AMD's current business remains outside the AI market.
Explore More Stories:
- "Huge data center growth pushes AMD revenues" – TechRadar
- "AMD Q1 disappoints, but new datacenter CPUs and GPUs coming" – The Register
- "AMD, Super Micro spark chip selloff as earnings miss lofty AI expectations" – Reuters / Investing.com
- "AMD is the latest company to show that AI is an expensive proposition" – MarketWatch
- "AMD says it will sell $4 billion in AI chips this year" - CNBC
- "AI chip darling AMD struggles to impress Wall Street this earnings season" – Yahoo! Finance
