AMD has forecasted $4 billion in sales of AI chips for 2024, marking an increase from the previously estimated $3.5 billion in January.

AMD's Q1 2024 Report

In the latest quarterly report, AMD reported anticipated revenue of approximately $5.7 billion, aligning with Wall Street's expectations and signaling a 6% annual growth trajectory. 

According to CNBC, the company disclosed a net income of $123 million, or 7 cents per share, its revenue saw a 2% year-over-year increase, and its stock experienced a 14% increase in 2024. 

A notable highlight was AMD's Data Center segment, which demonstrated remarkable growth of 80% year-over-year, reaching $2.3 billion in revenue.

This surge was primarily attributed to robust sales of AMD's MI300 series AI chips, directly competing with Nvidia's graphics processing units (GPUs).

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AMD Sees Bright Future on AI Chips

AMD remains optimistic about its AI chip sales, expecting a significant increase to $4 billion in 2024. This forecast represents an upward revision from the previous estimate of $3.5 billion in January. 

During the investor call,  AMD's CEO, Lisa Su mentioned ongoing developments in new AI chip technologies and the progression toward next-generation products. 

She also said that tech giants like Microsoft, Meta, and Oracle have been utilizing AMD's MI300X. 

AMD shares have slumped 24% from their March peak despite rising 80% over the past year. After Nvidia's Blackwell chip announcement, chip stocks have fallen, and AMD shares are under pressure.

Analysts have also warned of a customer-order pushout for AMD due to high-bandwidth-memory undersupply.

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