AMD Chips Power AI Growth Despite Economic Headwinds
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AMD has emerged as a strong competitor to Nvidia in AI chips for data centers with its new MI300 series. Major companies are buying these chips.
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AMD has a 90% market share in AI-enabled personal computers with its Ryzen 7000 series chips. Millions of PCs have these chips to handle AI workloads locally.
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AMD's data center revenue hit a record $2.3B in Q4 2023, up 38% YoY, partly thanks to AI chip demand. It forecasts its new MI300 GPUs will contribute $3.5B in 2024.
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AMD's client segment revenue (including Ryzen AI chips) was $1.5B in Q4, up 62% YoY. It expects continued strength after its next-gen hardware launch this year.
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Despite economic weakness in 2022, demand for AI hardware is fueling AMD's growth. Its valuation looks more reasonable for long-term investors buying now.