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AMD Surges: AI GPUs Drive Record-Breaking Quarter
4 Feb
Summary
- AMD anticipates $9.8 billion in revenue for the first quarter.
- Net income reached $1.51 billion, a significant increase from last year.
- Data center segment sales rose 39% driven by CPUs and AI GPUs.
Advanced Micro Devices (AMD) is forecasting first-quarter revenue of $9.8 billion, surpassing market expectations and signaling strong momentum for the chipmaker. This projection follows a period of significant growth, with net income soaring to $1.51 billion, or 92 cents per share, a substantial rise from the previous year's $482 million. Overall revenue saw a 34% annual increase.
The company's data center segment was a major driver, with sales reaching $5.4 billion, up 39% year-over-year. This surge is attributed to robust demand for both central processors and artificial intelligence GPUs. AMD has secured significant clients, including OpenAI, the creator of ChatGPT, and Oracle, and is set to introduce its integrated server-scale AI system, Helios, later this year. This performance has contributed to a more than doubling of AMD's share price over the past twelve months.
AMD's client and gaming segment also experienced strong growth, rising 37% annually to $3.9 billion, driven by market share gains for its Ryzen processors against Intel in the laptop and PC markets. While the embedded segment showed slower growth at 3% year-over-year to $950 million, the company's overall trajectory remains positive. AMD also reported $390 million in sales of its Instinct MI308 chips to China during the fourth quarter, navigating U.S. export controls.
