{"id":31157,"date":"2023-10-31T22:35:02","date_gmt":"2023-10-31T22:35:02","guid":{"rendered":"https:\/\/microloannexus.com\/news\/amd-gives-soft-fourth-quarter-guidance-but-expects-to-sell-2-billion-of-ai-chips-next-year\/"},"modified":"2023-10-31T22:35:04","modified_gmt":"2023-10-31T22:35:04","slug":"amd-gives-soft-fourth-quarter-guidance-but-expects-to-sell-2-billion-of-ai-chips-next-year","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=31157","title":{"rendered":"AMD gives soft fourth-quarter guidance, but expects to sell $2 billion of AI chips next year"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\">AMD<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> reported third-quarter earnings on Tuesday that beat analyst expectations, though the chipmaker issued a weaker-than-expected forecast.<\/p>\n<p>Here&#8217;s how the company did versus LSEG (formerly Refinitiv) consensus estimates for the quarter ending September:<\/p>\n<ul>\n<li><strong>EPS<\/strong>: 70 cents adjusted, versus expectations of 68 cents per share<\/li>\n<li><strong>Revenue<\/strong>: $5.8 billion, versus expectations of $5.7 billion<\/li>\n<\/ul>\n<p>For the fourth quarter, AMD said it expects about $6.1 billion in sales, while analysts were looking for revenue of $6.37 billion.<\/p>\n<p>AMD is one of the few chipmakers capable of making the kind of high-end graphics processing units (GPUs) needed to train and deploy generative artificial intelligence models. That market is dominated by <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\">Nvidia<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>. AMD said its forthcoming AI chips, the MI300A and MI300X, are &#8220;on track&#8221; for volume production in the current quarter.<\/p>\n<p>The stock initially dropped about 4% in extended trading but recovered after the company gave a rosy 2024 forecast for its AI chip business.<\/p>\n<p>&#8220;We now expect data center GPU revenue to be approximately $400 million in the fourth quarter and exceed $2 billion in 2024 as revenue ramps throughout the year,&#8221; AMD CEO Lisa Su said on the earnings call.<\/p>\n<p>Net income in the third quarter rose to $299 million, or 18 cents per share, from $66 million, or 4 cents per share a year ago. Revenue increased 4% from $5.6 billion a year earlier.<\/p>\n<p>Data center, which includes AMD&#8217;s server processors and AI chips called GPUs, reported $1.6 billion in sales, flat from a year earlier. AMD said its sales of server CPUs grew. AMD also said that it expects strong growth in its data center business in the fourth quarter.<\/p>\n<p>&#8220;We would like to be a significant player in this market,&#8221; Su said.<\/p>\n<p>On the call, Su also also mentioned recent AI acquisitions and improvements in the company&#8217;s AI software suite.<\/p>\n<p>&#8220;I think we all see the growth in generative AI workloads and the fact is we&#8217;re just at the very early innings of people truly adopting it for enterprise business productivity applications,&#8221; Su said.<\/p>\n<p>Revenue in AMD&#8217;s Client group, which includes sales from PC processors, rose 42% on an annual basis to $1.5 billion, driven by PC chips.<\/p>\n<p>Last week, chief rival <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-5\">Intel<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> reported third-quarter earnings that beat expectations for profit and sales, but still showed an annual revenue decline.<\/p>\n<p>AMD&#8217;s embedded segment revenue declined 5% to $1.2 billion, which the company blamed on a weak communications market. That includes parts for networking as well as the company&#8217;s FPGA unit that it acquired when it bought Xilinx.<\/p>\n<p>Sales in AMD&#8217;s gaming segment declined 8% to $1.5 billion, because of fewer &#8220;semi-custom&#8221; chip sales. That&#8217;s what the company calls its business that makes processors for consoles like Sony&#8217;s PlayStation 5.<\/p>\n<p><strong>WATCH:<\/strong> Wedbush&#8217;s Matt Bryson reacts to AMD&#8217;s Q3 earnings<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-107326472\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107326472\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000320981\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.cnbc.com\/2023\/10\/31\/amd-earnings-report-q3-2023.html\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>AMD reported third-quarter earnings on Tuesday that beat analyst expectations, though the chipmaker issued a weaker-than-expected forecast. Here&#8217;s how the company did versus LSEG (formerly Refinitiv) consensus estimates for the quarter ending September: EPS: 70 cents adjusted, versus expectations of 68 cents per share Revenue: $5.8 billion, versus expectations of $5.7 billion For the fourth<\/p>\n","protected":false},"author":1,"featured_media":31158,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":{"0":"post-31157","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.12 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>AMD gives soft fourth-quarter guidance, but expects to sell $2 billion of AI chips next year | Micro Loan Nexus<\/title>\n<meta name=\"description\" content=\"AMD reported third-quarter earnings on Tuesday that beat analyst expectations, though the 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