AMD Stock Jumps on Bullish Forecast for Data Center Chips, Though Near-Term Growth Uncertain

AMD's stock jumped over 8% on Wednesday after CEO Lisa Su forecasted $2 billion in data center chip revenue next year.

The optimistic forecast is driven by AMD's new MI300 AI chip, which it hopes can compete with rival Nvidia.

AMD beat revenue and earnings estimates last quarter, but forecasted slightly lower than expected revenue for next quarter.

AMD's data center revenue was flat last quarter, but the company expects the MI300 chip to drive growth.

AMD's stock is up 67% in 2022, though it remains below mid-June highs of over $125 per share.