2024-06-25 18:59:22 ET
Summary
- AMD's MI300 is the fastest-growing product in company history, surpassing $1 billion in sales in under two quarters.
- AMD plans to release new AI accelerators annually to compete with NVIDIA, but faces supply chain limitations.
- Revenue forecasts have been adjusted, with a HOLD rating on the stock.
Investment thesis
The MI300 has become the fastest growing product in AMD's history, surpassing $1 billion in total sales in less than two quarters. However, the company is experiencing a supply shortage, which limits the segment's future financial results.
At the same time, at the recent Computex conference, AMD presented an updated roadmap for the data center GPU subsegment through 2026, according to which the company plans to release new AI accelerators every year. The willingness to release new products at a similar frequency, as well as their actual features, suggests that AMD is serious about competing with NVIDIA. But the production capacity problem remains....
Read the full article on Seeking Alpha
For further details see:
AMD: Data Center Supply Constraints, Gaming Revenue Decline Results In HOLD Rating