AMD Expects $2 Billion AI Chip Sales Despite Soft Q4 Guidance

AMD reported better-than-expected third-quarter earnings, with adjusted EPS of 70 cents and revenue of $5.8 billion. However, the chipmaker issued a weaker-than-expected forecast for the fourth quarter, expecting sales of about $6.1 billion compared to analyst expectations of $6.37 billion. AMD aims to become a significant player in the AI chip market and expects to sell over $2 billion worth of AI chips in 2024. The company's forthcoming AI chips, the MI300A and MI300X, are on track for volume production this quarter. Despite an initial drop in stock price, AMD's positive outlook for its AI chip business in 2024 helped it recover.