AMD’s AI bets face investor scrutiny as Big Tech switches to custom chips

(Reuters) – AMD investors will closely examine the chip designer’s artificial intelligence strategy when it reports fourth-quarter results on Tuesday as Big Tech’s shift to custom silicon raises doubts about its place in the AI infrastructure race.

Analysts expect AMD’s December-quarter revenue to surge over 22% to $7.53 billion, but the company’s growth prospects are shadowed by the dominance of Nvidia in the AI chip market and the rising trend of tech giants like Microsoft, Amazon.com and Meta developing custom chips.