01 May 2024
If you are covering AMD’s latest financial results, please find below a comment from Ben Barringer, technology analyst at Quilter Cheviot:
“The stock market reaction to AMD’s latest set of figures is somewhat puzzling given the strong position the business finds itself in. Many investors were perhaps expecting a beat and raise on guidance, however, these latest financial numbers show a business performing as you would expect and with great potential.
“Importantly, data centre revenues were up 80%, and this is the primary source of sales and as such should be the focus of these results. As was expected, gaming console and auto sales were down as a result of slowing demand for these products.
“AMD has a bright future though with a strong roadmap for 2025 and beyond. Despite the shadow Nvidia casts, AMD is doing a good job with the likes of Meta, Microsoft and Oracle and it continues to benefit from supply constraints facing the tech infrastructure sector. New products are coming, and this should also help solidify AMD’s position as a second source of chips to Nvidia. Indeed, Nvidia and AMD are playing a game of ‘chip tennis’ with one another as each looks for the next advancement in the age of AI.
“Ultimately, the bar is lower for AMD to clear. It has such a low market share compared to Nvidia that just any gains will be huge for its revenues. With AI being integrated into everyday tech more and more, we see AMD being a real winner in this space.”
