Semiconductor manufacturer AMD challenge a Nvidia on chips for the field of artificial intelligence. AMD said it intends to develop AI chips for the Chinese market in its second-quarter earnings release, which implies complying with U.S. export caps set by the Biden administration.
“Our plan is obviously to be fully compliant with US export controls, but we believe there is an opportunity to develop products for our customers in China who are looking for AI solutions and we will continue working in that direction,” he said. declared the CEO Lisa Su.
Lisa Su, CEO of AMD, said in the call with analysts that China is an “important” market and that the semiconductor giant intends to be fully compliant with US export controls.
The market reaction
Initially, following the release of the second quarter accounts, the stock rallied by +4%. While today follows the negative trend of Wall Street and collapses of 6% a 1oo dollars for action. Year-to-date, AMD has made gains l’82% this year making it the second best performing member of the Philadelphia Stock Exchange Semiconductor Index.
The challenge to Nvidia
CEO Lisa Su said AMD is ready to ramp up production of its flagship chips, MI300in the fourth quarter. Accelerator chips, which are in short supply, are designed to compete with advanced chips H100 of AI, already sold by rival company, Nvidia. In detail i accelerator chips they are a type of semiconductor needed to train huge amounts of data for artificial intelligence applications.
The market for artificial intelligence accelerators in data centers it could exceed 150 billion dollars by 2027, Lisa Su said at her analyst conference. Customer “engagement” with AMD’s AI products increased more than sevenfold last quarter as customers prepare to harden their infrastructure, she said.
“While we are still in the very early days of the new age of AI, it is clear that AI represents a multi-billion dollar growth opportunity for AMD,” said Lisa Su.
Second quarter numbers
Sales and profits in the second quarter both exceeded analysts’ projections. And especially accelerators from AMD, a type of processor that accelerates the development of AI software, are attracting more interest from customers. And it is precisely the accelerators, which have stimulated optimism that the company can objectively compete with Nvidia and capitalize on the rapid diffusion of artificial intelligence in all sectors.
AMD’s PC chip division also performed better than expected last quarter, a sign that the market is recovering from a deep post-pandemic slump. Second quarter earnings were by 58 cents a share higher than analysts’ expectations 57 cents. While the revenues were of $5.36 billioncompared to a forecast of $5.32 billion.
While last week, Intel announced that it finished the second quarter of 2023 with earnings per share of 13 cents, on an adjusted basis, much better than the loss of 3 cents expected by the analysts interviewed by Refinitiv. The semiconductor maker returned to profit after two consecutive quarters of losses.
While Nvidia will publish the accounts, Wednesday, August 23 after the close of Wall Street.
Guidance revised upwards
The semiconductor maker revised its current quarter revenue forecast upwards in range 5.4 – 6 billion dollars. That compares with an average analyst estimate of $5.84 billion. The midpoint of the range would represent an approximately 2.5% gain over the same period a year earlier, marking the end of the declines seen in two consecutive quarters.