Advanced Micro Devices Inc (AMD), the second-biggest maker of computer processors, on Tuesday gave a lukewarm revenue forecast for the current period, weighed down by lackluster demand for chips used in video game hardware.
Second-quarter revenue would be approximately US$5.7 billion, the company said in a statement.
That compares with an average analyst estimate of US$5.72 billion.
Photo: Bloomberg
AMD said that its gross margin would be about 53 percent in the second quarter, matching predictions.
Revenue from AMD’s gaming division fell well short of projections in the first quarter, but the company is expecting to get a boost from a push into artificial intelligence (AI) accelerators — Nvidia Corp-style chips that help develop chatbots and other AI tools.
The company has projected that its new MI300 products would generate as much as US$3.5 billion of revenue this year.
“This is an incredibly exciting time for the industry as widespread deployment of AI is driving demand for significantly more compute across a broad range of markets,” AMD chief executive officer Lisa Su (蘇姿丰) said in the statement.
The AMD report follows a downbeat forecast last week from Intel Corp, which said it expects demand to remain sluggish in the first half of the year, but AMD is still expecting growth in the range of 6 percent in the current quarter, better than the roughly flat projection of its larger rival.
First-quarter earnings per share were US$0.62, excluding some items, on revenue of US$5.47 billion. That performance compared with estimated earnings per share of US$0.61 and US$5.45 billion in sales.
AMD’s PC chip division had revenue of about US$1.4 billion, compared with a US$1.29 billion estimate.
Data center sales came in at US$2.3 billion, in line with the average projection.
Meanwhile, gaming computer-related revenue was US$922 million. Analysts had expected sales of US$965.5 million.
Like Intel, AMD still gets most of its revenue from PC and server microprocessors. The once-solid server market has been less reliable because operators of data centers have plowed much of their budgets into Nvidia chips — the very area AMD is now making its own play for.
AMD also competes with Nvidia in the market for graphics processors that improve the images in video games. It is the biggest rival of Intel in both server and PC processors — as well as in programmable logic chips, which can be reconfigured with software after they are installed, and it supplies Microsoft Corp and Sony Group Corp with the main component in their game consoles.
Separately, Super Micro Computer Inc also on Tuesday reported quarterly sales that fell slightly short of estimates. The results disappointed investors who had sky-high expectations that the server maker’s business would benefit from AI-related demand.
Revenue in the March quarter climbed to US$3.85 billion, the company said in a statement. That’s just below the consensus estimate of US$3.86 billion, according to data compiled by Bloomberg. Profit, excluding some items, was US$6.65 per share, ahead of the US$5.58 expected by Wall Street analysts.
A jump in demand for the equipment that powers artificial intelligence training and applications has helped drive sales at Super Micro, which makes data center servers. Growth rates at the San Jose, California-based company have climbed higher in recent quarters on the back of deals with large corporations and an improving supply of high-powered chips.
Chief executive officer Charles Liang (梁見後) said in a statement that the company should “continue gaining market share” as new products are released.
Revenue in the quarter ending in June will be US$5.1 billion to US$5.5 billion, the company said. Analysts, on average, projected US$4.73 billion, according to data compiled by Bloomberg. Profit, excluding some items, will be as much as US$8.42 per share, compared with an average estimate of US$6.97.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
RSS