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(Bloomberg) – Micro Devices Inc. Advanced of disappointing results for its data center department, indicating that it does not achieve gains in NVIDIA Corp. In the artificial smart computing market.
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Although the total revenue of AMD that has the top estimates – and provided a strong prediction for the current period – the data center unit has been considered a weak point. The shares of the chip maker slipped by 5 % in the late trading after the release of the report.
Revenue in the section amounted to $ 3.86 billion during the fourth quarter. This jumped 69 % from the previous year, but analysts expected $ 4.09 billion. The company said on Tuesday that the total sales will be 6.8 billion dollars to 7.4 billion dollars in the current quarter. Analysts estimated 7.04 billion dollars on average.
The report renewed the concern that pushing AMD to artificial intelligence equipment lost some momentum – which confirms the concerns of analysts and investors. This feeling has been neglected in recent weeks through the arrival of a Chinese startup with a cheaper approach. AMD shares decreased by 1.1 % this year until Tuesday.
Although AMD won the market share of Intel Corp. PC chips brought $ 2.3 billion of revenues in the last quarter, and my estimation amounted to $ 1.99 billion.
AMD is trying to convince some of the world’s largest companies to include AI products in their data center expanding plans. He is still playing annex with NVIDIA in this endeavor. Although AMD now generates more than $ 5 billion of annual revenue from acceleration chips that help develop artificial intelligence models, NVIDIA sales in this category exceeds $ 100 billion per year.
AMD revenue in the fourth quarter increased by 24 % to 7.66 billion dollars, with estimates of 7.54 billion dollars. It reached $ 1.09, minus some elements, in line with predictions.
The Chinese company Deepseek said last month that it was able to develop the competitive Amnesty International model on part of the expenses incurred by large American companies. This advertisement has sparked a sales in AI’s stocks, including AMD and NVIDIA, to worry that the huge expenses on new devices will not be necessary.
AMD also provides dedicated processors for Microsoft Corp. And Sony Group Corp. For games control devices. This unit has witnessed weaker sales, which are hurt by the current generation of machines near the end of its life courses. Game revenue decreased by 59 % to $ 563 million in the fourth quarter.
