AMD will publish third-quarter results tonight, after the Wall Street close. According to FN2 and Investing.com, analyst consensus is for revenue of about $13.08 billion and earnings of about $1.94 per share. For comparison, in the second quarter the company reported revenue of $11.5 billion, 58% of it from the data center segment.
All about data centers
According to Pepperstone, data center revenue is expected at about $6.6 billion: about $3.6 billion from EPYC server processors, about $2.75 billion from Instinct AI accelerators, and the rest from FPGA chips. Management has said it expects data center sales to accelerate in the second half of the year.
The question: MI350
AMD's server processors are very successful and are taking market share from Intel. But investors want to see that its GPU accelerators, the MI350 series and later MI450 and Helios systems, are also gaining traction against Nvidia's dominance. In a week when AMD and Nvidia said they would invest in Meta, also their customer, the results will show how much of that demand is real.
The Israeli angle
AMD has R&D activity in Israel, and its results, along with Intel's, signal the state of the market in which chipmakers' Israeli R&D centers operate. As competition among AMD, Nvidia and Intel for data centers heats up, so does demand for chip engineers, including in Israel. We will update when results are out.
