AMD’s worst performing sector was its gaming section, which fell 48% year on year to $922 million, citing fewer chip sales for game consoles and PC’s. The gaming industry is known for its cyclical nature, with periods of growth followed by slower periods. If AMD is experiencing a downturn in the gaming sector, it may be part of a broader cyclical trend rather than a company specific issue.
Its prediction of $4 billion in AI chip sales for 2024 fell short of Wall Street investors’ high expectations, following larger rival Nvidia’s enormous forecasts over the previous year. AMD expects to generate approximately $5.7 billion in revenue in the current quarter, which is consistent with Wall Street projections.
That would equate to approximately 6% annual growth.The company generated net profits of $123 million, or 7 cents per share, compared to a net loss of $139 million, or 9 cents per share, in the previous year. Revenue rose roughly 2% over the previous year.
