AMD had reported the earnings for its third quarter on Tuesday after the bell. However, not all the chips fell on its side.
While it has beaten the estimates on the top and the bottom line, the company has totally missed its Q4 guidance. The shares of AMD fell by about 4% in the after hours trading before they gained back their loss.
In the Q3, AMD reeled in revenue of $5.8 billion and $0.70 in EPS. However, they forecasted $6.1 billion in their revenue for the upcoming quarter while missing out on the expectations of $6.4 billion.
Despite the AI bloom, AMD is catching up with Nvidia, which is at present ruling the roost when we talk about the AI chips. But, the underdog is looking forward to making headway, as per Lisa Su, the CEO of AMD, who very recently made the case that the field of AI is a lot more open than what it may appear right now.
“I’m not a believer in moats when the market is moving as fast as this,”
Su mentioned this to the audience present at the Code Conference of 2023.
“When you think about moats, … [they are in] markets where people are not really wanting to change things a lot.”
Looking forward, the new data center chip of AMD, the MI300, maybe the anticipated push that the company needs to be able to narrow the gap on their competition. The company is also betting that the ramp-up of the MI300 chips will provide it with a portion of the lucrative data center business, as the technical firms are racing to grab onto the power to be able to train their own AI models.
“This growth would make MI300 the fastest product to ramp to $1 billion in sales in AMD history,”
Su further added.
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