AMD makes strides in AI as competition heats up in 2024
- AMD is experiencing significant growth in the AI sector, particularly in its data center segment, which is expected to contribute nearly 50% of revenue.
- The company forecasts $6.71 billion in net sales for Q3 2024, marking a 15% increase, despite a slower growth rate compared to competitors.
- Analysts are optimistic about AMD's upcoming earnings report, which could catalyze stock recovery, although concerns about government regulation remain.
In the United States, Advanced Micro Devices (AMD) is experiencing significant growth in the artificial intelligence (AI) sector, although it still trails behind NVIDIA, which holds a first-mover advantage. AMD's data center segment has shown remarkable growth, contributing nearly 50% of the company's revenue in the first half of the year. The company anticipates a 15% increase in net sales, reaching $6.71 billion, despite a slower growth rate compared to industry peers. Analysts are optimistic about AMD's upcoming Q3 earnings report, which is expected to act as a catalyst for stock recovery. However, the market has been volatile, with AMD's stock price declining nearly 10% from its recent peak. Investors are cautious due to potential government regulations that could impact the company's performance. The consensus among analysts suggests that AMD's revenue growth may be underestimated, with expectations for a widening margin and continued demand for its products. The upcoming launch of the Turin EPYC data center CPUs, which will compete with NVIDIA's Blackwell, is also anticipated to bolster AMD's position in the market.