AMD Exec Forrest Norrod Expects AI Revenue To Exceed $2B In 2024 Thanks To MI300
Portfolio Pulse from Surbhi Jain
AMD's EVP and GM, Forrest Norrod, at the UBS Annual Technology Conference, highlighted the potential of the MI300 in positioning AMD as a key player in the AI market. He expects AI revenue to surpass $2 billion in 2024, with the MI300 launch being a significant milestone. AMD's market share in North American hyperscalers is above 50%, and it aims to increase its enterprise sector share. Norrod compared AMD's chiplet technology favorably against NVIDIA and discussed compliance with U.S. export regulations for the Chinese market. Partnerships with companies like HPE, Dell, Lenovo, and Supermicro are key, and AMD's software strategy includes collaborations with hyperscalers and open-source initiatives. AMD maintains a strong foundry partnership with TSMC but is open to working with Intel if they catch up. The company targets a 30% plus operating margin over time, supported by investments in AI and other sectors.
December 04, 2023 | 2:12 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
AMD's MI300 is expected to drive AI revenue above $2 billion in 2024, indicating strong growth potential in the AI sector.
The positive outlook on AI revenue driven by the MI300 suggests potential stock price appreciation as the market responds to growth prospects in the lucrative AI sector.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
AMD's partnership with Dell is part of its strategy to increase market share in the enterprise sector.
AMD's mention of Dell as a partner in its growth strategy could positively influence Dell's stock as it may benefit from AMD's AI and enterprise sector expansion.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
AMD's partnership with Hewlett Packard Enterprise is crucial for its growth in the enterprise sector.
The partnership with HPE is part of AMD's enterprise growth strategy, which could have a positive impact on HPE's stock as it may benefit from AMD's AI and enterprise initiatives.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
AMD's focus on increasing its enterprise sector share includes partnerships with companies like Lenovo Group Ltd.
AMD's mention of Lenovo as a partner could positively impact Lenovo's stock, as it may benefit from AMD's focus on growing its enterprise sector share.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 40
POSITIVE IMPACT
AMD's enterprise growth strategy includes partnerships with Lenovo Group Ltd, which could benefit both companies.
As with LNVGF, AMD's partnership with Lenovo (LNVGY) could have a positive impact on Lenovo's stock due to potential growth driven by AMD's enterprise sector initiatives.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 40
POSITIVE IMPACT
AMD's strong foundry partnership with TSMC is highlighted, but AMD remains open to future collaborations with Intel.
AMD's strong partnership with TSMC is a positive indicator for TSMC's stock, as it suggests continued business and potential growth from AMD's AI and semiconductor initiatives.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 70
NEUTRAL IMPACT
AMD is open to a foundry partnership with Intel if they catch up, indicating potential collaboration in the future.
While AMD is currently partnered with TSMC, the openness to work with Intel if they improve their capabilities could lead to future collaboration, but the impact on Intel's stock is neutral in the short term as no concrete plans were announced.
CONFIDENCE 65
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
AMD's confidence in its MI300 chiplet technology positions it as a strong competitor against NVIDIA in the AI space.
AMD's comparison of its chiplet technology to NVIDIA's suggests competition, but the short-term impact on NVIDIA's stock is neutral as the market has likely already priced in competitive dynamics.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 70