Thought Leadership
The artificial intelligence chip business is dominated by Nvidia. Rival AMD is currently fighting for a piece of the market. But the stock market is not moving fast enough.
Semiconductor company AMD’s race to catch up with AI chip market leader Nvidia is going slower than Wall Street had hoped. Revenues in the data center business rose by 69 percent year-on-year to 3.9 billion dollars in the past quarter. However, analysts had on average expected a higher figure of around 4.14 billion dollars. AMD shares fell by around five percent at times in after-hours trading.
This makes AMD the clear number two in the business with chips for training software based on artificial intelligence. However, the gap to market leader Nvidia is huge.
Total AMD sales rose by 24 percent to around 7.66 billion dollars (7.4 billion euros) in the past quarter, exceeding market expectations. Profit fell from 667 to 482 million dollars year-on-year.
dpa
