Chip company: AMD disappoints despite record quarterly results
The chip manufacturer is presenting its investors with an "excellent quarter" with a profit growth of 246 percent. Nevertheless, the stock collapses after hours.
Frankfurt – AMD's robust demand for server processors has surprisingly accelerated its growth, despite delivering an optimistic outlook that caused Wall Street shares to fall by nine percent post-market. Analyst Jacob Bourne from eMarketer noted that AMD is now in a similar situation to Nvidia and hyperscalers, as investors look for indications that AI infrastructure investments will continue to drive profits.
AMD is the world's second-largest supplier of AI processors, after Nvidia, benefiting from the search for alternatives to the global market leader. AI developer Anthropic ordered chips from AMD with a total energy demand of two gigawatts, contributing to AMD's potential investment of up to five billion dollars. The semiconductor manufacturer is set to start delivering the second generation of its AI servers soon, competing with computer makers like Dell, Lenovo, and Hewlett-Packard Enterprise, as well as the world's largest electronics contract manufacturer, Foxconn.
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