On Tuesday, Advanced Micro Devices (AMD), a multinational semiconductor business, announced it achieved second-quarter revenue of $5.4bn with a gross margin of 46%. Mirroring its Q1 financial performance, the company’s net income came in at $948m. This news boosted AMD shares by 2.8% at the close of trading on August 1 2023.
AMD reveals AI plans for strong year-end in the wake of Q2 results
In the same breath, AMD predicted ending the year on a strong financial note as it plans to launch AI chips that are on par with the current Nvidia offerings. CEO Lisa Su indicated that the company aims to boost the manufacture of the artificial intelligence M1300 semiconductors, one of its flagship products, in the fourth quarter. The design of these is in line with the Nvidia H100 chips already on the market.
A supply shortage of accelerator chips drives this decision. Su indicated that, based on their market research, interest in these semiconductors from top-level cloud providers and forefront AI giants is significant. These include prominent names such as Microsoft and Google, as they are looking to invest in beefing up their data centres during the latter half of 2023.
Jean Hu Source: Crunchbase
Experts believe there’s a gap in the market for AI processors, and AMD recognised this. Jean Hu, AMD’s finance chief, commented:
“Looking to the third quarter, we expect our Data Center and Client segment revenues to each grow by a double-digit percentage sequentially driven by increasing demand for our EPYC and Ryzen processors, partially offset by Gaming and Embedded segment declines.”
