AMD AI Chip Forecast Signals Growth
Advanced Micro Devices, or AMD, shared some exciting news this week. The company expects to sell a lot of AI (artificial intelligence) chips in the future. They think these sales could reach over $2 billion by 2024. This news came right after they told everyone that their earnings for the third quarter were a bit better than what people thought they would be.
AMD made $0.70 per share, which was just a little more than what was expected, and they brought in $5.80 billion. But even with good news, they said the next quarter might not meet everyone’s expectations at $6.1 billion, less than the $6.4 billion people were looking for.
Still, the company’s CEO, Lisa Su, said that their new AI chips are set to be the fastest-selling product they’ve ever had. Not everyone is convinced, though. HSBC called AMD’s next-quarter forecast “soft” but did say the new AI chip looks promising.
Bank of America kept its neutral position, noting that AMD is doing well with AI but might see some drops in other areas like gaming. However, the excitement around AMD’s AI chips helped their stock increase by 16.4% for the week.
Qualcomm Beats the Market
Another tech company, Qualcomm, did well too. They earned more money and sold more than what people were expecting. They even think they will make more in the next quarter than the experts say. However, some analysts are waiting to see if Qualcomm can keep doing well in other areas like cars and computers.
Bernstein, a big financial firm, thinks Qualcomm’s stock is a good deal, and they should be doing even better soon. After this news came out, Qualcomm’s stock went up almost 6% in one day and ended the week 12% higher.