Artificial Intelligence Boosts AMD With High Expectations

The second largest maker of PC processors AMD revenue tops $5.4 billion for the second quarter of 2023, slightly higher than analysts predicted and its own guidance for the quarter. The company’s revenue went down by 18% compared to last year’s send quarter revenue.

The company said it continues to ride the wave of artificial intelligence(AI) interest and that ai demand is boosting most sector stocks. AMD’s stock price was up by 3% immediately after its earnings report.

AMD CEO Lisa Su said despite current weak demand in some segments, AI is driving growing customer activity.

“AI customer engagements grew by more than seven times sequentially as multiple customers initiated or expanded programs supporting future deployments of our Instinct MI250 and MI300 hardware and software at scale,” Su said.

She added, “Our AI strategy is focused on three areas. First, deliver a broad portfolio and multiple multi generation roadmap of leadership GPUs, CPUs, and adaptive computing solutions for AI inferencing and training. Second, extend the open and proven software platform we have established that enables our AI hardware to be deployed broadly. And third, expand the deep and collaborative partnerships we have established across the ecosystem to accelerate deployment of AMD-based AI solutions at scale. We delivered on all three fronts in the second quarter.”

Furthermore, she said, “While we are still in the very early days to the new era of AI, it is clear that AI represents a multi-billion dollar growth opportunity for AMD across cloud, edge, and an increasingly diverse number of intelligent endpoints. We have increased our AI-related R&D, ecosystem-enablement, and go-to-market investments to capture a significant share of this emerging market.”

The company expects data centre demand to improve in the second quarter of the year. The company also shared its fears that customers will hold off on spending in favour of AI technology.