Guidance for the December quarter
Looking to the current quarter, the semiconductor company forecast approximately $9.6 billion in revenue, implying 25% growth from the prior year and above the LSEG average estimate of $9.15 billion. AMD projected an adjusted gross margin of 54.5%, exactly matching StreetAccount’s consensus figure.
The outlook does not factor in sales from Instinct MI308 accelerators destined for China, reflecting ongoing U.S. export restrictions. Chief Executive Officer Lisa Su told analysts that the company has secured “some licenses” to ship the MI308, adding that discussions with customers regarding demand and sizing of the opportunity are continuing.
Position in the AI processor market
AMD is stepping up efforts to compete with Nvidia in the fast-growing market for artificial intelligence hardware. In October, the chipmaker reached an agreement with OpenAI that could lead the AI research firm to acquire a 10% stake in AMD. The partnership calls for OpenAI to deploy 6 gigawatts of Instinct GPUs across multiple hardware generations, beginning with an initial 1-gigawatt rollout in the second half of next year. AMD expects the arrangement to add more than $100 million in revenue over the next few years, and Su said she sees the AI segment on a path toward generating “tens of billions” of dollars in annual sales by 2027.
Further reinforcing its AI ambitions, Oracle announced plans last month to install 50,000 AMD Instinct MI450 chips in its cloud infrastructure starting in 2024. These moves follow years in which companies such as OpenAI relied almost exclusively on Nvidia’s GPUs to train and deploy large-scale machine-learning models.
Share performance and investor activity
Despite the after-hours decline of nearly 5% following the results, AMD shares had gained 107% year to date through Tuesday’s close, far outpacing the Nasdaq Composite’s 21% rise over the same period. In a separate development, Amazon disclosed in a regulatory filing that it had sold all 822,234 AMD shares it held as of 30 September. The e-commerce and cloud-services provider had built the position earlier this year.
Imagem: Internet
The brisk advance in AMD’s stock price reflects investor optimism about the company’s foothold in data-center computing and a perceived opportunity to capture a larger slice of AI silicon spending. According to industry data compiled by Reuters, global demand for high-performance AI processors is expected to expand rapidly as enterprises deploy generative AI tools and cloud providers scale specialized infrastructure.
Licensing and export considerations
The partial approval to ship MI308 processors to Chinese customers illustrates the nuanced regulatory environment facing U.S. chipmakers. Washington has tightened rules on exporting advanced semiconductors to China, intending to limit the country’s access to leading-edge technology. AMD’s guidance assumes no revenue contribution from such shipments, but management signaled that licensed deliveries could take place if demand materializes and additional approvals are granted.
At the same time, AMD is pursuing opportunities with U.S. government initiatives. Earlier this year, the company said it would supply processors for a $1 billion supercomputer project under the Department of Energy, underscoring federal interest in domestic high-performance computing capabilities.
Market outlook
With continued momentum in data-center and client segments, and an expanding pipeline of AI partnerships, AMD enters the final quarter of its fiscal year seeking to balance growth initiatives with margin discipline. The company’s ability to scale production of Instinct GPUs, navigate export controls, and convert announced agreements into meaningful revenue will remain focal points for investors assessing its competitive stance against Nvidia and other rivals.
Crédito da imagem: Advanced Micro Devices
