AMD raises forecast for AI chip revenue and sees supplies remaining tight

Advanced Micro Devices on Tuesday increased its 2024 forecast for artificial intelligence chip sales by $500 million and said supplies would remain tight through 2025, sending shares of the Santa Clara, California-based company up 7.5% in extended trading. The AI chips designed by AMD are largely bought by cloud computing giants.

Industry insiders and Wall Street view AMD’s line of AI chips as one of the few potentially viable competitors to Nvidia, which dominates the market. Shares of Nvidia rose 4.7% following the AMD report. AMD counts Meta Platforms as a customer, and Microsoft launched access to a cluster of AMD chips for AI via its cloud platform earlier this year.