“AMD’s Soaring Success: A Closer Look at the 8% Surge Fueled by Promising 2024 AI Chip Projections”

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Well, it was quite the rollercoaster for AMD’s stocks on Wednesday! Why, you ask? Because they shot up like a rocket after AMD spilled the beans on their optimistic outlook for the data center GPU business in 2024.

You see, AMD isn’t just any player in this game—it’s one of the few rocking the stage with those high-powered GPUs that AI just can’t get enough of. So, when AMD paints a bright picture for the future of its AI chip business, investors start doing a happy dance.

What’s even more interesting is how this good news managed to calm the nerves of investors who might’ve been a bit jittery about AMD lowering its revenue expectations for the last quarter of 2023. It’s like AMD whispered, “Hey, we’ve got some big plans for AI, so no worries, folks!”

In the ever-evolving world of tech stocks, AMD seems to be riding a wave of confidence, proving once again that in the realm of high-tech jargon and stock markets, a positive outlook can be the superhero cape a company needs. Cheers to AMD and their AI dreams!

AMD had Wall Street doing a double-take as its stocks soared over 8% on Wednesday, a mere day after the company not only outperformed earnings estimates but also painted a rosy picture for its artificial intelligence chip business in 2024.

Breaking it down, AMD reported earnings per share of 70 cents, adjusted, a squeaky win over the LSEG estimate of 68 cents per share. Revenue played a slim beat too, coming in at $5.8 billion against the expected $5.7 billion.

What really lit the fire, though, was a comment from AMD’s CEO, Lisa Su, who shared the exciting news that the company anticipates GPU revenue hitting about $400 million in the fourth quarter and soaring past $2 billion in 2024. Cue the stock market rally.

Analysts are all aboard the AMD AI train, especially considering the current AI market dominance by Nvidia. AMD stands out in the small group of companies flexing the ability to craft those high-powered graphics processing units that fuel AI models.

Bank of America analysts jumped in, noting, “Upcoming MI300 accelerator is guided to $400mn sales in Q4E and $2bn+ in CY24E, with healthy traction across hyperscalers, enterprises, OEMs, and AI startups.” AMD’s MI300A and MI300X GPUs are revving up for mass production in Q4 this year.

Even with Raymond James adjusting their price target (down to $125 from $145), they’re keeping AMD as a “strong buy,” singing praises for its AI business potential. According to them, AMD is off to a solid start, and they’re eyeing a 10–20% share of the $100B+ AI accelerator market in the long run.

Jeffries analysts echoed the sentiment, highlighting the standout news that AMD expects its datacenter GPU family (MI300) to rake in $2 billion in revenues in 2024. This, they pointed out, was significantly higher than the Street’s estimates of $1 billion to $1.5 billion. It’s a solid win for AMD, signaling a promising future in the competitive AI landscape.

In a nutshell, AMD’s recent moves have Wall Street buzzing with excitement, proving once again that in the world of tech stocks, positive outlooks and strong projections are the real power players.

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