AMD sees profit surge as it banks on AI chips

1 Nov 2023

Image: © JHVEPhoto/

The company predicts that its MI300 AI accelerator chip will be the fastest product to reach $1bn in sales ‘in AMD history’.

US semiconductor giant Advanced Micro Devices – AMD – has shared a soft forecast for the rest of the year, but expects revenue for its AI chips to ramp up in 2024.

The company reported revenue of $5.8bn for the third quarter of 2023, up by 4pc compared to the same period last year. AMD’s gross profit went up by 17pc, reaching more than $2.74bn.

Meanwhile, the company’s net income for the quarter surged by 353pc, reaching $299m compared to $66m last year. The results mark a significant improvement over AMD’s previous quarter, which saw a drop in net income of 94pc.

“We delivered strong revenue and earnings growth driven by demand for our Ryzen 7000 series PC processors and record server processor sales,” said AMD chair and CEO Dr Lisa Su.

Despite the profit plunge AMD witnessed earlier this year, the company saw its shares rise due to its plans around its MI300 AI accelerator chips.

The company is focusing more on these semiconductors, which are designed to support the vast amounts of data required for AI systems. Nvidia is another large player in this field.

AMD recently acquired open-source software company, which the semiconductor company plans to use to accelerate its plans to make AI chips.

For the rest of 2023, AMD provided a forecast that was below analyst expectations, according to CNBC. The company expects its fourth-quarter revenue to be roughly $6.1bn, with a potential “plus or minus” change of $300m.

However, Su gave a strong outlook for 2024 in an earnings call and said AMD expects its data centre GPU revenue to exceed $2bn in 2024 “as revenue ramps throughout the year”. She said this forecast is based on the “rapid progress we are making with our AI road map execution and purchase commitments from cloud customers”.

“This growth would make MI300 the fastest product to ramp to $1bn in sales in AMD history,” Su said.

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Leigh Mc Gowran is a journalist with Silicon Republic