AMD CEO Highlights 'Huge' AI Opportunity: 'It's Going To Change Everything We Do'
Portfolio Pulse from Adam Eckert
AMD CEO Lisa Su emphasized the significant AI opportunity for the company, predicting a $400 billion total addressable market by 2027. Despite beating Q4 revenue estimates and meeting EPS expectations, AMD's stock price declined. The company has raised its AI accelerator guidance and expects AI chip revenue to exceed $3.5 billion this year. Su believes there is room for many companies to succeed in AI due to the massive demand.
January 31, 2024 | 7:47 pm
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AMD's CEO Lisa Su highlighted the company's potential in the AI market, with a forecasted $400 billion TAM by 2027 and increased AI chip revenue expectations. Despite positive Q4 results, AMD's stock price dropped.
While the CEO's positive outlook on AI and raised revenue guidance suggest strong future prospects for AMD, the immediate stock price reaction was negative, likely due to market conditions or profit-taking after the earnings announcement. The short-term impact appears neutral as the market digests the news and balances the positive future outlook with current valuation.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100