TECH - AMD Failed To Meet Lofty Expectations | Benzinga
At the end of April, Advanced Micro Devices Inc (NASDAQ: AMD) failed to impress, unlike Nvidia Corporation (NASDAQ: NVDA) that has been crushing investor expectations on the back of soaring AI chip sales for quite a while. It’s no secret that AMD trails the undoubtable leader Nvidia that holds as much as 80% of the thriving market for AI server semiconductors.
First Quarter Highlights
For the March quarter, AMD reported revenue rose 2% YoY to $5.47 billion that slightly surpassed LSEG’s estimate of $5.46 billion.
Unlike last year’s comparable quarter when it made a net loss of $139 million, or 9 cents per share, AMD reported a net income of $123 million, or 7 cents per share.
Adjusted earnings amounted to 62 cents per share, slightly surpassing 61 cents a share analysts expected.
Data center revenue jumped 80% to $2.3 billion thanks to AMD's MI300 series of AI processors that challenge Nvidia and its graphics processing units. CEO Lisa Su revealed that AMD’s MI300X is being used by Microsoft Corporation (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), and Oracle Corporation (NYSE: ORCL). Since the launch which took ...