AMD: Raises by 75%, exceeding 3.5 billion! Wall Street: Far from enough!
Wall Street has been predicting that AMD's sales of AI chips will reach $8 billion by 2024. In comparison, NVIDIA's data center sales could exceed $16 billion in the current quarter alone.
AMD has raised its performance expectations for AI chips, but it has not met market expectations.
On Tuesday, January 30th, local time, AMD CEO Lisa Su stated during the earnings conference call that AMD expects AI chip sales to increase by 75% to over $3.5 billion by 2024. However, Wolfe Research analyst Chris Caso stated that Wall Street has been predicting this number to reach $8 billion.
AMD's recent financial report shows that in the fourth quarter of last year, AMD's data center chip sales (including GPUs and general-purpose computing chips) increased by 38% YoY to reach $2.3 billion. However, AMD stated that data center chip sales for this quarter will remain flat compared to December last year.
In comparison, NVIDIA's data center sales may exceed $16 billion in the current quarter alone. NVIDIA's data center revenue in the previous quarter increased nearly fourfold YoY.
AMD launched a series of AI accelerators called MI300 last month. Lisa Su said, "The response from customers to the MI300 has been very positive, and we are actively increasing production to support dozens of cloud service, enterprise, and supercomputing customers deploying Instinct accelerators."
In addition, AMD's financial report also shows that its fourth-quarter revenue was $6.17 billion, higher than analysts' expectations of $6.13 billion. The operating profit for the quarter was $1.41 billion, slightly lower than analysts' expectations of $1.43 billion.
From the performance report, it can be seen that although AMD's fourth-quarter revenue exceeded analysts' expectations, its first-quarter performance guidance fell short of expectations.
Analysts believe that although AMD is rapidly expanding in the AI accelerator field, it is still in the early stages of expansion and cannot shake NVIDIA's dominant position. AMD stated that the issue of tight accelerator production capacity will be improved, and accelerator revenue will impact the second half of the year's performance.