CEO Lisa Su’s bold forecast exceeds expectations
- AMD projects revenue of $2 billion from AI chips in 2024
- CEO Lisa Su confident in company’s AI opportunity
- Forecast exceeds Wall Street predictions
- Engagements with customers for new chip family, MI300
- AI chips could fuel growth in data-center segment
- AMD targeting both inference and training workloads
- Nvidia’s supply constraints create opportunity for AMD
- Potential risks to AMD’s AI ambitions
- Su’s confidence in AMD’s products and customer relationships
Advanced Micro Devices Inc. (AMD) has made a bold projection for revenue from its first AI chips, with CEO Lisa Su confident in the company’s AI opportunity. Su stated that the company could see data-center revenue of about $400 million in Q4, and that total could exceed $2 billion in 2024. This forecast exceeded Wall Street predictions and helped offset a less rosy overall outlook for the fourth quarter. AMD’s engagements with customers for its new chip family, MI300, and the strong demand for AI chips contribute to Su’s optimism. The company is targeting both inference and training workloads, with a focus on performance in inference workloads. The supply constraints faced by Nvidia create an opportunity for AMD in the AI chip market. However, there are potential risks to AMD’s AI ambitions, including the latest U.S. ban on certain advanced chips to China. Despite these risks, Su’s confidence in AMD’s products and customer relationships should reassure investors about the company’s ability to capitalize on the growing AI boom.
Public Companies: Advanced Micro Devices Inc. (AMD), Nvidia Corp. (NVDA)
Private Companies:
Key People: Lisa Su (Chief Executive), Aaron Rakers (Wells Fargo analyst), Stacy Rasgon (Bernstein Research analyst)
Factuality Level: 7
Justification: The article provides information about Advanced Micro Devices Inc.’s projection for revenue from its first AI chips and the CEO’s optimistic forecast. It includes quotes from the CEO and analysts, as well as information about the company’s engagements with customers and its competition with Nvidia. However, the article lacks specific details about the AI chips and potential customers, and it does not provide a balanced view of the risks and challenges AMD may face in the AI market.
Noise Level: 7
Justification: The article provides some relevant information about Advanced Micro Devices Inc.’s projection for revenue from its AI chips. However, it contains some repetitive information and lacks in-depth analysis of the long-term trends or antifragility of the company. It also does not provide evidence or examples to support its claims. Overall, the article is moderately noisy.
Financial Relevance: Yes
Financial Markets Impacted: AMD’s revenue projection for its AI chips could impact the financial markets, particularly in the data-center segment.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses AMD’s bold revenue projection for its AI chips, which could have implications for the company’s financial performance and potentially impact the financial markets.
