AMD share price went down in pre-market on Tuesday. This comes Advanced Micro Devices is expected to outline the company’s plans for its artificial intelligence chip and systems businesses at a financial analyst day at the Nasdaq in New York. AMD stock is down by 0.28 per cent. Advanced Micro Devices Inc shares closed in green on Monday.
The chip designer has been attempting to expand its AI business as rival Nvidia gobbles up market share for data center chips as the market explodes. AMD has been successful in the central processor (CPU) business, steadily taking share against Intel.
The company’s next-generation MI400 series of AI chips is set to launch in 2026 and include several variants designed for scientific applications and for generative AI. Along with the MI400 chips, AMD is also planning to launch a complete server rack, similar to a product Nvidia sells called the GB200 NVL72.
At AMD analyst days, business unit heads typically present a series of projections and financial forecasts for the next several years. Beyond its AI chips, AMD likely will discuss its PC and video game chip businesses and its programmable chip unit. Last week, the Santa Clara, California-based company forecast fourth-quarter revenue that topped Wall Street estimates. Demand for AI chips gave AMD executives a reason for optimism about the remainder of the year. The company’s data center CPU business has also benefitted from the surge in AI-related spending.
The company last held an analyst day in 2022. Tuesday’s event will start at 1 p.m. (ET). AMD signed a multiyear deal with ChatGPT creator OpenAI in October that will bring the company more than $100 billion in new revenue over four years from OpenAI and other customers. As part of the arrangement, OpenAI will receive warrants that allow it to purchase a stake of up to 10 in the chipmaker.
The OpenAI arrangement was a much-needed large customer for AMD, which has not yet captured the outsized returns from the boom in AI spending as Nvidia has.
FAQs
Q1. How has AMD stock performed?
A1. AMD stock closed in green on Monday. However, Advanced Micro Devices shares are down in the pre-market.
Q2. When does AMD analyst day event start?
A2. AMD analyst day event start at 1 pm (ET) on Tuesday.