.jpg)
1 hour ago
2
Article content
(Bloomberg) — Advanced Micro Devices Inc., the main challenger to Nvidia Corp. in the market for artificial intelligence processors, gave a disappointing forecast for the current period, a sign it’s not making the kind of AI inroads that some investors anticipated.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
First-quarter sales will be roughly $9.8 billion, plus or minus $300 million, the company said in a statement Tuesday. Analysts had estimated $9.39 billion on average, but some projections topped $10 billion, according to data compiled by Bloomberg.
Article content
Article content
Article content
In a mixed blessing, AMD said that it has begun selling one of its older chips to China. That added to sales — and suggested that the company is navigating trade restrictions — but weighed on profit margins.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The outlook let down investors who had hoped to see a bigger payoff from AI computing spending. AMD is still playing catch-up with Nvidia in this lucrative market, but the chipmaker has said that a new more powerful design — due in the second half of the year — will give it an advantage.
Article content
The shares fell more than 5% in late trading after the results were released. They had been up 13% this year through Tuesday’s close.
Article content
Fourth-quarter sales rose 34% to $10.3 billion, beating a $9.7 billion average estimate. Profit was $1.53 a share, minus certain items. Analysts projected $1.32 on average, according to data compiled by Bloomberg.
Article content
AMD’s data center business, the main beneficiary of AI spending, rose 39% to $5.38 billion in the period. Analysts had predicted $4.97 billion on average. Personal computer-related sales rose 34% to $3.1 billion. The average prediction was $2.89 billion.
Article content
Article content
Like Nvidia, AMD is contending with US restrictions on what it can export to China — the world’s biggest market for chips. President Donald Trump recently moved to relax the curbs, but it’s taken time to get the needed licenses from the Department of Commerce.
Article content
The company generated $390 million of revenue last quarter from shipping older-generation MI308 chips to Chinese customers. It expects about $100 million of such sales in the current period.
Article content
More broadly, AMD expects giant deals with OpenAI and Oracle Corp. — as well as overall demand for AI gear — to generate tens of billions of dollars in new revenue. Analysts and investors have pressed executives for more precise projections on when that will happen.
Article content
AMD’s recent agreements with OpenAI, Oracle and the US Department of Energy reflect increased interest in its MI series of AI accelerators. Those products, which go head to head with chips from Nvidia, are used in data centers to create and run AI services.
Article content
AMD is also one of the largest providers of graphics chips and central processing units used in PCs and servers. Intel, AMD’s chief rival in that field, gave a disappointing forecast last month, saying it couldn’t get enough supply to meet strong demand. Wall Street took that as an indication that AMD was continuing to win market share.
Article content
English (US)