Lisa Su, chair and CEO of Superior Micro Units Inc., in the course of the AMD Advancing AI occasion in San Jose, California, on Dec. 6, 2023.
David Paul Morris | Bloomberg | Getty Photographs
Superior Micro Units shares fell greater than 10% on Wednesday after the chipmaker under-delivered on Wall Avenue’s estimates for its vital knowledge middle enterprise.
Shares traded at a 52-week low and had been on tempo for his or her worst session since October.
AMD reported better-than-expected outcomes on the highest and backside strains, nevertheless it additionally reported knowledge middle gross sales of $3.86 billion. That mirrored 69% progress from a yr in the past however fell in need of the $4.14 billion in gross sales anticipated by analysts polled by LSEG.
The important thing unit, answerable for promoting superior chips for knowledge facilities, has benefitted in recent times from rising demand for its graphics processing models, as megacap expertise firms race to develop superior synthetic intelligence instruments.
Knowledge middle income grew 94% for the complete yr to $12.6 billion, with $5 billion of these gross sales stemming from AMD’s AI-focused Intuition GPUs. The corporate is the second-largest producer for gaming after Nvidia, which has triumphed because the market chief in AI chips and ballooned in worth to a virtually $3 trillion market worth.
“We consider this locations AMD on a steep long-term progress trajectory, led by the fast scaling of our knowledge middle AI franchise from greater than $5 billion of income in 2024 to tens of billions of {dollars} of annual income over the approaching years,” AMD CEO Lisa Su stated on the earnings name with analysts.