AMD Sees Its AI Chip Sales Surpassing $2B in 2024

AMD Sees Its AI Chip Sales Surpassing $2B in 2024

Published: November 01, 2023

AMD's CEO Lisa Su projected on Tuesday the company's data center revenue from AI chips will hit around $400 million in the final quarter of 2023, with an ambitious target to exceed $2 billion next year.

If realized, this bold projection will mark the MI300 as AMD's quickest product to reach a billion dollars in sales.

AMID Instinct MI300X
AMD Instinct MI300X | Image Source: AMD

Despite facing stiff competition from Nvidia and other market challenges, the robust demand for AI-specific chips, particularly the MI300 family, places AMD in a favorable position to achieve this milestone.

Furthermore, it instills investor confidence in the company's AI market potential.

Following the company's third-quarter earnings results, Su presented strong evidence supporting AMD's capability to meet its optimistic forecast. She highlighted customer engagement for the MI300 chip family, robust demand for AI-specific chips, and significant AI progress. 

The company's strides with corporate clients are expected to drive the adoption of AMD's new chips.

Although Nvidia has dominated AI training, it faces supply constraints and recent concerns related to a U.S. ban on advanced chip sales to China. However, AMD also faces challenges, including the timeline for substantial revenue and competition from Nvidia. 

Despite these risks, Lisa Su's confidence in AMD's AI products and customer relationships suggests the company is well-positioned to thrive in the growing AI market, instilling investor confidence in its ability to capitalize on this emerging opportunity.

Edited by Nikola Djuric

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