AMD Stock Jumps on Bullish Forecast for Data Center Chips, Though Near-Term Growth Uncertain
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AMD's stock jumped over 8% on Wednesday after CEO Lisa Su forecasted $2 billion in data center chip revenue next year.
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The optimistic forecast is driven by AMD's new MI300 AI chip, which it hopes can compete with rival Nvidia.
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AMD beat revenue and earnings estimates last quarter, but forecasted slightly lower than expected revenue for next quarter.
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AMD's data center revenue was flat last quarter, but the company expects the MI300 chip to drive growth.
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AMD's stock is up 67% in 2022, though it remains below mid-June highs of over $125 per share.
