Advanced Micro Devices (AMD) is enhancing its presence in the AI, cloud, and data center sectors with strategic partnerships in Q3 2023, including collaborations with Celestica, Nutanix, and Samsung. AMD is investing $150 million in Nutanix and has committed up to $100 million to support joint initiatives. Furthermore, AMD and Celestica are working on the “Helios” rack-scale AI platform. These partnerships aim to accelerate the deployment of AI applications globally.
AMD’s projected revenue for the upcoming quarter is $9.8 billion, representing a 32% year-over-year increase but a 5% sequential decline, attributed to declines in the Client and Gaming segments. In contrast, competitors like NVIDIA and Broadcom have reported significant gains. NVIDIA’s data center revenues surged 75% year-over-year to $62.31 billion, while Broadcom’s semiconductor revenues rose by 52% to $12.52 billion.
Despite a 4.3% decline in AMD’s stock price year-to-date, they maintain a Zacks Rank #3 (Hold). The consensus estimate for AMD’s earnings in the upcoming quarter stands at $1.27 per share, indicating a 32.3% growth year-over-year.
