NEW YORK: Advanced Micro Devices Inc (AMD), the leading challenger to Nvidia Corp in artificial intelligence (AI) computing chips, gave a surprisingly robust sales forecast, showing that it’s cashing in on a flood of data centre spending.
Second-quarter revenue will be US$11.2bil, plus or minus US$300mil, the company said in a statement on Tuesday.
That compares with an average analyst prediction of US$10.5bil, according to data compiled by Bloomberg.
AMD shares rose as much as 8.7% in extended trading following the announcement. The stock earlier closed at US$355.26 in New York trading, leaving it up 66% this year.
The outlook signals that AMD is winning orders from the biggest spenders on AI computing.
Though Nvidia remains the dominant provider of AI processors, data centre customers are increasingly seeking alternatives, a trend that has helped AMD.
There’s a massive amount of money at stake. Alphabet Inc’s Google, Amazon.com Inc and other so-called hyperscalers have indicated that they will spend as much as US$725bil in 2026 on AI.
AMD is the second-largest maker of AI accelerators, chips that are used to train and run AI services. It still trails Nvidia in that market by a wide margin.
AMD’s product lineup includes microprocessors that serve as the heart of server computers, an area where it has taken market share from Intel Corp. — Bloomberg
