(Bloomberg) – Advanced Micro Devices Inc. fell in late after giving a disappointing perspective for his activity as a data center, an area where he has trouble catching up with the IA leader of the Nvidia Corp.
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The division will increase by a percentage of the two “strong” figures this year, said AMD at a conference call with analysts, predicting that the second half would be better than the first. But in an industry that has seen NVIDIA sales double in each of the last two years, this was not enough to impress investors.
The actions of the flea manufacturer slipped up to 11% to $ 106.50 after the opening of the markets in New York on Wednesday.
Although the overall revenues of the fourth quarter of AMD have exceeded estimates – and it provided a solid forecast for the current period – the data center numbers have overshadowed the other results.
The report has renewed the concern that AMD’s push in AI equipment has lost a certain momentum – confirming the fears of analysts and investors. This feeling has been delighted in recent weeks by the arrival of a Chinese startup with a cheaper approach.
The income from the data center division was $ 3.86 billion during the fourth quarter. This jumped 69% compared to the previous year, but analysts had planned $ 4.09 billion. On average, analysts provide that the unit will generate $ 18.4 billion in 2025. It would be a growth of 46% compared to 2024.
Although AMD has won Intel Corp market share. In personal computers and servers in the last quarter, this area is less an engine of growth. PC chips brought in $ 2.3 billion in income in the last quarter, exceeding the estimate of $ 1.99 billion.
AMD is trying to persuade some of the world’s largest companies to include its AI products in their data center extension plans. He always plays a catch -up with Nvidia in this company. Although AMD now generates more than $ 5 billion in accelerator chips that help develop AI models, NVIDIA sales in this category exceed $ 100 billion per year.
Total turnover of the fourth quarter of AMD increased 24% to $ 7.66 billion, exceeding the estimate of $ 7.54 billion. The profit per share amounted to $ 1.09, less certain articles, in accordance with predictions.
Total sales will be $ 6.8 billion to $ 7.4 billion in the current quarter, AMD said. Analysts estimated $ 7.04 billion on average.