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AMD forecasts 22% revenue growth from AI, data center chips
AMD is scheduled to report its fourth-quarter financial results on Feb. 4.
Analysts project a revenue increase of over 22%, reaching US$7.53 billion, as the chipmaker’s AI infrastructure market position comes under scrutiny.
For the fourth quarter, AMD’s data center chip segment is expected to rise 82% year-on-year to US$4.15 billion, making it the largest revenue contributor.
Additionally, analysts forecast that AMD’s AI chip sales could hit US$10 billion this year, doubling the previously stated 2024 projection, according to estimates from TD Cowen and Omdia.
Despite these growth expectations, competition from custom AI processors made by large cloud providers and companies like Broadcom and Marvell remains fierce.
The company is anticipated to report a fourth-quarter net income of US$1.08 billion, reflecting a 61.4% increase compared to the same period last year.
Recent AMD developments
| Timeline |
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19-Dec-2024 💸 AMD invests in AI cloud startup Vultr at $3.5b valuation
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14-Nov-2024 💻 AMD lays off 4% of workforce to sharpen AI chip focus
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30-Oct-2024 📉 AMD’s stock drops 7% despite strong data center growth
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17-Oct-2024 🤝 Intel, AMD join forces to improve software compatibility
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