4 February 2025
If you are covering AMD’s latest financial results, please find below a comment from Ben Barringer, head of technology research at Quilter Cheviot:
“AMD delivered a good set of results, with revenues up 36%, but it has been punished for not knocking it out of the park after rumours that it had done exceptionally well in the last quarter. Importantly, AMD has taken further share from Intel, particularly in the PC and data centre markets. We also saw a small number of sales in China, which may grow further and is a real positive for future growth too.
“Later this year, however, we are expecting AMD to ship its next generation chip, so there is potential for further growth from that regard, particularly given the customers it has signed up. This chip will look to challenge Nvidia, but given current starting positions that is easier said than done, but could easily become a second source for chips after Nvidia. Furthermore, AMD is exposed to the memory price surges of late in the PC and gaming market, and thus it could get buffeted by that.
“Wider tech concerns in the market definitely helped with the bruising after hours performance, but AMD remains well placed to weather any storms. It remains the best alternative to Nvidia, and in a world where supply chains in AI will only broaden, that is no bad thing to be.”
