Computers AMD gains a foothold in the AI chip business

The semiconductor company AMD is gradually gaining a foothold in the AI chip business dominated by its major competitor Nvidia. Last quarter, AMD broke the one billion dollar sales mark for its MI300 processors.

For the current year, AMD CEO Lisa Su has now forecast AI chip revenues of 4.5 billion dollars - 500 million dollars more than previously expected.

This makes AMD the clear number two in the business with chips for training software based on artificial intelligence. However, the gap to market leader Nvidia is huge.

Sales on the rise

In the last quarter, AMD's turnover in data center technology was more than twice as high as a year earlier at 2.8 billion dollars - Nvidia, however, generated revenues of 22.6 billion dollars in this area.

AMD has long been known primarily as a competitor to Intel in the PC processor business. Sales in this area recently rose by 49 percent to 1.5 billion dollars. However, business with chips for games consoles fell by 59 percent to 648 million dollars.

Group-wide, this resulted in an increase in turnover of nine percent to 5.8 billion dollars. At the bottom line, profit jumped from 27 million dollars a year earlier to 265 million dollars. Investors sent the shares up by more than seven percent in after-hours trading on Tuesday.

SDA