AMD Rallies After Predicting Sales Surge for New AI Processor
AI optimism helps investors look past tepid overall forecast
The slowdown in demand for video game consoles is hurting sales
Tweet on AMD stock fluctuation
@AMD soared as much as 8.4% after saying a new AI chip will generate $2 billion in sales next year, fueling optimism that demand for the component will offset a slump in orders for video-game equipment, via Bloomberg#amd #chips #aihttps://t.co/xW29kpHS7O
— The_Journalbiz (@the_journalbiz) November 1, 2023
Bloomberg on AMD chips
Advanced Micro Devices Inc. soared as much as 8.1% after saying a new AI chip will generate $2 billion in sales next year
The company’s MI300 processor, which will compete with Nvidia Corp. products in the market for artificial intelligence accelerators, is set to begin shipping in the coming weeks, AMD said during a post-earnings conference call Tuesday.
The chip has received strong early orders, including from large cloud computing customers. It should bring in $400 million in revenue this quarter, on the way toward generating more than $2 billion for the whole of 2024, AMD said. In fact, it’s on course to be the fastest-ever AMD product to reach $1 billion in sales, the company projected.
