Advanced Micro Devices chief executive officer Lisa Su protected the company poor prognosisThe chipmaker told CNBC on Wednesday that demand has picked up over the past two to three months.
Shares fell 13% on Wednesday.
“I would tell you from the inside, AI is accelerating at a rate I never imagined,” he told CNBC.The ringing in the street“, adding that the demand is exceeding the computing needs.
AMD’s data center business accelerated from the fourth quarter to the first quarter, Su said, and demand for its central processing units is “going up” as business AI rapidly ramps up computing for enterprise workloads.
The company announced the results of the fourth quarter That beat Wall Street’s expectations on Tuesday, but it happened shaded Some experts believe that this is a weak prediction.
AMD said it expects first-quarter revenue of $9.8 billion, plus $300 million. Estimates were $9.38 billion.
Some analysts expected a much stronger forecast from the company due to increased AI spending and massive data center construction.
AMD also has a high bar to clear this quarter after a wave of megadeals in the fourth quarter, including partnerships together OpenAI and Oracle in the fourth quarter. Companies are also increasing investments as the need for data centers to power AI tools increases.
Su told CNBC that he sees an “inflection point” in the second half, when AMD starts shipping a new integrated server AI system called Helios, and that the company is on track to launch.