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Benzinga
  • 2 years ago
Advanced Micro Devices forecasts $2 billion in sales in 2024 from a chip competing with Nvidia in the AI market. The company's fourth quarter revenue and gross margins are expected to be below estimates due to the weak gaming market and declining demand for programmable chips. AMD's stock initially dropped after revealing the chip outlook but recovered after announcing commitments from large customers. The demand for programmable chips in industries like wireless communications, healthcare, and automotive has slowed. Capital spending cuts by Meta Platforms could also impact AMD.
Transcript
00:00 Benzinga and here's what's on the block. Advanced Micro Devices forecast $2 billion in sales in 2024
00:07 from a chip competing with NVIDIA in the AI market. The company's fourth quarter revenue
00:12 and gross margins are expected to be below estimates due to weak gaming market and declining
00:16 demand for programmable chips. AMD's stock initially dropped after revealing the chip
00:22 outlook but recovered after announcing commitments from large customers. The demand for programmable
00:28 chips in industries like wireless communications, healthcare and automotive has slowed. Capital
00:34 spending cuts by meta platforms could also impact AMD. For all things money visit Benzinga.com
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