Advanced Micro Devices (AMD.O) on Tuesday forecast a strong finish to the year, driven by the planned launch of artificial-intelligence chips that could compete with Nvidia (NVDA.O) semiconductors.
AMD shares rose about 3% in after-hours trading.
CEO Lisa Su said AMD is set to ramp up production of its flagship MI300 artificial-intelligence chips in the fourth quarter. The accelerator chips, which are in short supply, are designed to compete against the advanced H100 chips already sold by Nvidia.
Su said customer interest in the MI300 series chips is “very high” and AMD expanded its work with “top-tier cloud providers, large enterprises and numerous leading AI companies” during the third quarter.
Investors are betting that MI300 chips, due for release later this year, will challenge Nvidia in the surging market for advanced AI chips.
MI300s exceed the performance limits for sale to China under export controls issued in October, and unlike Nvidia and Intel (INTC.O), AMD has yet to create special chips for the lucrative Chinese market.
“Looking to the third quarter, we expect our Data Center and Client segment revenues to each grow by a double-digit percentage sequentially driven by increasing demand for our EPYC and Ryzen processors, partially offset by Gaming and Embedded segment declines,” said AMD finance chief Jean Hu.
The company forecast current-quarter revenue of about $5.7 billion, plus or minus $300 million. Analysts polled by Refinitiv on average expect revenue of $5.82 billion.