The optimism over AI chip sales helped ease worries about a disappointing fourth-quarter forecast and put it on course for market value gains of about $10 billion, based on the $104 share price.
She projected annual sales of more than $2 billion, and raised the chip's current-quarter revenue expectations by $100 million."Hitting this milestone is likely a key first step towards proving AMD is the clear second source to Nvidia in the AI accelerator market," said analysts at TD Cowen. AMD's shares have gained 61 per cent this year through last close, but those gains pale in comparison to Nvidia's 184 per cent rally.
"Forecasts were below our prior estimates ... and it's quite possible that such estimates could be conservative," Morningstar analyst Brian Colello said.