Written by Max A. Cherny and Shafi Mehta
(Reuters) – Superior Micro Units on Tuesday forecast a robust fourth quarter and expects to have synthetic intelligence gadgets that may problem Nvidia chips by that quarter.
Shares are up about 3.5% in after-hours buying and selling.
“Our AI participation elevated greater than sevenfold within the quarter, as many shoppers began or expanded applications that help future deployments of Intuition accelerators at scale,” mentioned Lisa Su, AMD CEO.
Su mentioned that AMD is making ready to ramp up manufacturing of MI300 AI chips within the fourth quarter. The MI300 AI accelerator chips are designed to compete with the superior H100 chips already being offered by Nvidia, though they’re in brief provide.
Buyers are betting that AMD might in the future problem Nvidia within the bull marketplace for superior AI chips when AMD releases a competing product later this yr.
Income in AMD’s knowledge heart enterprise fell 11% to $1.32 billion, whereas income within the buyer enterprise fell 54% to $998 million from $2.2 billion a yr in the past.
Analysts mentioned that main cloud gamers comparable to Microsoft and Google plan to extend spending on knowledge facilities within the second half of the yr and that spending will skew towards AI and infrastructure segments.
Nevertheless, the decline in PC shipments has eased and demand is beginning to present indicators of enchancment.
“Wanting into the third quarter, we anticipate our knowledge heart and buyer revenues to develop by double-digit sequentially pushed by elevated demand for our EPYC and Ryzen processors, partially offset by declines within the gaming and embedded phase,” mentioned AMD Finance President Jan Hu.
The corporate expects income for the present quarter to be about $5.7 billion, plus or minus $300 million. Analysts surveyed by Refinitiv anticipate income of $5.82 billion.
(Reporting by Shafi Mehta in Bengaluru and Max A.