AMD Forecasts Continued Strong Growth in AI Accelerators, Despite Missing Some Expectations
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AMD raised its 2024 AI accelerator revenue forecast from over $2B to over $3.5B, disappointing some analysts expecting $5-10B. However, a closer look suggests AMD is executing very well.
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AMD's quarterly data center GPU revenue is likely to grow about 50% sequentially in Q1 2024 to around $600M based on comments from the earnings call.
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AMD's updated annual data center GPU guidance of over $3.5B implies a 75% increase over the prior forecast and a run rate exceeding $5B exiting 2024.
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Additional data center GPU orders could drive 2024 revenue to $5-6B. Exiting at a $8B run rate seems achievable based on customer response and supply.
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Doubling data center GPU revenue in 2024 would more than double AMD's overall data center business year-over-year. AMD is significantly exceeding expectations in AI accelerators.