Advanced Micro Devices Inc【AMD】株式ニュース

MW agrees with you.

I suspect the after hours market reaction to AMD’s guidance for next year is unwarranted? … but it could take up to another year before it changes its mind!

MW AMD could still be a sleeper against Nvidia, but Wall Street isn't yet convinced
2024-10-29 09:44:00 PM ET (DJMW)

MW AMD could still be a sleeper against Nvidia, but Wall Street isn't yet convinced
By Therese Poletti

Advanced Micro Devices executives made some bold statements about the company's underdog AI accelerator chip Tuesday, and said it is ready to take the spoils from rival Nvidia Corp.

But for Wall Street analysts, those statements were not bold enough, with the company giving an updated AI chip-revenue forecast that merely met their expectations at $5 billion. Now investors are trying to determine if that forecast is something to worry about, or if AMD could be a sleeper bet against Nvidia.

In after-hours trading Tuesday, AMD (AMD) shares fell nearly 8%, ending the extended session at $153.57. Some investors had been hoping AMD would raise its outlook for AI chips. At the same time, company executives acknowledged that the profit margins for AMD's family of AI graphics chips were below the company's average.

Also read: AMD earnings: Stock falls as AI outlook fails to pack upside

"We feel very good about the market from everything that we see. Talking to customers, there's significant investment in trying to build out the infrastructure required across all of AI workloads," AMD Chief Executive Lisa Su told analysts on the company's conference call, when asked about the company's AI chips. "And then within that, our product portfolio is getting stronger with the annual cadence."

Even so, one analyst pointed out that he believed Nvidia (NVDA) is still ahead of AMD in terms of performance, even with its newest chips, and wondered how AMD plans to close the gap. Su said she did not believe that AMD is behind Nvidia anymore.

"We have, with our accelerated roadmap, actually closed a good part of that gap," Su said. "I think MI325 is a great product. It's going to compete very well with H200 and the MI350 series will compete very well with Blackwell," she added, referring to Nvidia's next-generation GPUs.

While the proof will come in the coming year, investors should also remember that under Su, AMD became a viable No. 2 to Intel Corp. (INTC) in the data-center market, a market that Intel nearly completely dominated until AMD's rise. That, too, took time, with Su assuring investors over many quarters that corporate-enterprise customers were trying out AMD's chips before fully committing to them.

"The ramp is going well, and we will continue to earn the trust and the partnership of these large customers," Su said when describing the AI chip market. "What I will say is, customers are very, very open to AMD. And we see that everywhere we go, everyone is giving us a very fair shot at earning their business, and that's what we intend to do."

Upon congratulating Su for her major impact on the company over her 10-year tenure, one analyst pointed out that the stock was around $3 when she took over as CEO. That was also before AMD returned to the server business, and when it was struggling with its own manufacturing assets.

Investors who doubt that AMD's technology is good enough to compete against Nvidia might want to revisit the past decade, and remember how its data-center business, which grew more than 100% this quarter, started out. AMD appears to be ready to chip away at Nvidia, and that would make it a serious No. 2 in the AI arena.

市場データ

ニュース

投資ツール

市場

発見

Hot Features

Follow Feed

ライブオプションフロー

モニター