Data Center Sales Boom Still Months Away as AMD Shares Fall

Deep News08:01

Advanced Micro Devices (AMD) projected on Tuesday that its first-quarter revenue would see a slight decline, despite an unexpected boost from AI chip sales to China, raising concerns about the company's ability to effectively challenge Nvidia in the booming artificial intelligence market. During a call with investors, AMD CEO Lisa Su reiterated the company's expectation for a rapid increase in sales of its new flagship AI servers to OpenAI and other customers in the second half of the year, adding that the global memory chip shortage would not slow its plans. "I don't believe our growth will be constrained by supply limitations," Su stated. Nonetheless, these sales projections fall outside the company's forecast for the current first quarter, meaning its other chips, such as central processing units (CPUs), will need to carry the bulk of the sales growth in the coming months. The company's stock fell 7% in after-hours trading. "The market's expectation for a massive blowout quarter from AI-related hardware companies in Q1 has distorted expectations," said Bob O'Donnell, President of TECHnalysis Research. On the call, Su also mentioned that AMD is working with customers beyond OpenAI regarding its new AI servers.

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