Swings and roundabouts

1 min read

While Nvidia continues to impress AMD came up short this week when it released figures showing that while AI chips sales had risen, they hadn't done so enough and failed to impress investors.

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Over the course of 2024 AMD is expecting to shift $4bn worth of AI chips, according to Chief Executive Officer Lisa Su, which represents an increase of $500 million from its prior estimate for the year.

However, with investors apparently in awe of Nvidia’s performance those figures disappointed, and the company’s shares took an immediate tumble.

It’s unfortunate for AMD that Nvidia has repeatedly surpassed investor expectations driven by the soaring sales of its AI chips.

According to analysts AMD doesn’t appear to have a strong enough pipeline of AI-related products and is not making the kind of progress seen by its main competitor.

AMD has also seen its traditional market for server semiconductors hit by customers turning to AI servers which are better placed to address the more complex demands of AI.

Nvidia currently accounts for 80 per cent of AI server chips so AMD is starting from a much lower base.

While AMD suffered from weaker growth in some of its key markets, revenue from its data centre business soared by 80 per cent.

However, it appears that in today’s market it seems you either live or die by AI.