AMD says it will sell $4 billion in AI chips this year; stock drops on in-line forecast

AMD reported first-quarter earnings that slightly surpassed Wall Street expectations, with $5.47 billion in revenue and adjusted earnings per share of 62 cents. The company's forecast for the current quarter is $5.7 billion, aligning with analyst predictions and indicating a 6% annual growth. Despite these figures, AMD's stock fell by 7% in extended trading.

The company's Data Center segment, boosted by sales of its MI300 series AI chips, grew 80% year-over-year to $2.3 billion. AMD has sold over $1 billion of these chips since their launch in late 2023 and now projects $4 billion in AI chip sales for 2024. However, its gaming segment saw a significant decline, dropping 48% to $922 million due to reduced chip sales for game consoles and PCs.