AMD's revenue expectations did not meet the appetite of the capital market, leading to a 7.6% drop in stock price
海角七号
发表于 昨天 14:25
120
0
0
After the stock market closed on October 29th, AMD released its Q3 2024 financial report. The company's third quarter performance met market expectations, with revenue reaching 6.82 billion US dollars, an increase of 18% year-on-year, exceeding LSEG's expected 6.71 billion US dollars. Net profit reached 771 million US dollars, a significant increase of 158% year-on-year, and gross profit margin reached 50%.
However, the company's revenue forecast for the fourth quarter did not meet market expectations. The company's forecast is about 7.5 billion US dollars (fluctuating by 300 million US dollars), with a year-on-year growth of nearly 22%, slightly lower than the market average expectation of 7.55 billion US dollars.
For investors worried about the "AI foam", whether Nvidia and AMD, the star companies whose performance soared due to AI, can keep growing as expected is the key factor affecting market confidence.
As a result, AMD's after hours stock price plummeted by 7.6%.
In fact, AMD's client business related to PC consumer products showed significant growth in the third quarter, with revenue reaching $1.881 billion, a year-on-year increase of 29.5% and a month on month increase of 26%. The company stated that the growth is mainly driven by strong demand for the latest Zen 5 architecture Ryzen processors.
The current PC market is still sluggish. According to the latest report from IDC, global PC shipments in the third quarter of this year decreased by 2.4% year-on-year, and the market needs more time to recover. It is expected to return to single digit growth next year.
For AMD, AI related data center business is currently the focus of attention.
From the third quarter financial report, it can also be seen that AI is currently the main driving force behind AMD's growth. The revenue of the data center department reached 3.5 billion US dollars in the third quarter, a significant increase of 122% year-on-year. According to its introduction, this is mainly due to the increase in sales of the company's AI chip products Instinct GPU and EPYC CPU.
As a highly regarded challenger to Nvidia, AMD has officially released two main AI chips, the Instinct MI300X and Instinct MI325X, to catch up with Nvidia. Among them, MI325X is the latest strongest performance product released this month, directly benchmarking Nvidia's H200 released in November last year. It is planned to be launched in the fourth quarter of 2024.
But the pace of competitors has not slowed down, and Nvidia's new architecture AI GPU B200, which was launched in March this year, also began to be delivered and launched in the fourth quarter. According to the official introduction, the performance of B200 is 2.5 times that of the previous generation H200 GPU, indicating that the competition among AI chip giants is still unprecedentedly fierce.
The main buyers of AI chips in the market are Silicon Valley tech giants such as Google, Meta, Microsoft, Amazon, Tesla, etc. Previously, it was believed that the current AI boom was mainly driven by AI infrastructure projects such as giant investment in data centers. Most of the growth of Nvidia and AMD's data center business came from a small number of major customers. If the number of AI infrastructure being deployed by the giant exceeded the current actual demand, the foam might burst in the future.
AMD CEO Lisa Su responded to this during a conference call, stating that she is "very optimistic about the market" and based on current observations, "customers are actively investing in building the infrastructure needed for all AI workloads".
When an analyst mentioned that "Nvidia is still ahead of AMD in the latest product performance, and how AMD plans to narrow the gap," Su Zifeng responded by saying, "I don't think AMD is still behind Nvidia. In her opinion, according to the company's planned product roadmap, AMD's products have narrowed a significant gap with Nvidia.
Both Nvidia and AMD have accelerated the release of AI chips from "one update every two years" to "one update every year" this year. According to AMD's vision, the MI325X is currently capable of competing head-on with the H200, and next year's MI350 series will start a new round of competition against the B200.
In addition, AMD's gaming and embedded businesses continued to decline due to sluggish market demand. The gaming division's revenue for this quarter was $460 million, a year-on-year decrease of 69%. The company stated that this was mainly due to a decrease in revenue from its semi custom business; The revenue of the Embedded Business Unit for this quarter was 930 million US dollars, a year-on-year decrease of 25%, mainly due to customer adjustments to inventory levels.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
猜你喜欢
- High salary hires' fire brigade leader 'to become CEO, understanding the ups and downs of Starbucks' stock price this year with a picture
- Jike CEO An Conghui: Jike 001, 007, 009 will not have any new model year iterations within a year
- Is returning Warcraft useless? NetEase's stock price suddenly collapsed!
- Seven sisters of science and technology share prices soared and plummeted, and the suspense of artificial intelligence foam remained unsolved
- Smallpox vaccine approved by FDA for preventing monkeypox infection, causing a huge shock in Emergent's stock price
- What are investors worried about when the stock price is hovering at a low level?
- The stock price has plummeted by 99% in the past three and a half years! American discount retail giant Bylottery files for bankruptcy
- Some models of the new iPhone have been "cracked" and "scalpers" are not accepting orders
- Renowned giant suddenly announces massive layoffs, including executives, managers, and employees! The CEO said the situation is difficult, but the company's stock price has skyrocketed
- Fosun still hasn't been able to excel in luxury goods
-
【美股成交额前20:特朗普媒体科技集团大涨逾20% 较近期低点涨逾300%】第8名特朗普媒体科技集团收高21.59%,成交47.92亿美元。对比9月份的最低点11.75美元,该股迄今已经上涨310%。随着“总统大选日”倒计时,周一特 ...
- poketmonster
- 前天 11:47
- 支持
- 反对
- 回复
- 收藏
-
10月30日消息,星巴克正加大力度执行重返办公室的规定,并发出警告:员工若不遵守该政策就可能被解雇。据一则内部讯息,星巴克将于明年1月启动“问责程序”,以确保公司层面员工遵守每周在办公室工作三天的要求 ...
- 燕语莺声
- 昨天 17:22
- 支持
- 反对
- 回复
- 收藏
-
代表美国华盛顿州约3.3万名波音工人的国际机械师和航空航天工会第751分区(IAM District 751)当地时间10月29日表示,在美国代理劳工部长朱莉·苏(Julie Su)的持续协助下,工会谈判委员会与波音进行了富有成效 ...
- 397393583
- 昨天 14:35
- 支持
- 反对
- 回复
- 收藏
-
【瑞幸被曝计划进军美国市场:咖啡售价2-3美元 “剑指”星巴克】据外媒报道,中国最大的咖啡连锁店瑞幸咖啡(Luckin Coffee)计划进军美国市场,以低价饮品与星巴克等竞争对手展开竞争,这标志着该公司在欺诈丑闻后 ...
- yousunjian
- 前天 21:23
- 支持
- 反对
- 回复
- 收藏