AMD Targets $2 Billion GPU Revenue by 2024 with Strong Forecast and Competitive Edge

Advanced Micro Devices, Inc. AMD, a key player in the semiconductor industry, is poised to surpass its revenue target of $2 billion for GPU in 2024, as suggested by recent investor meetings hosted by KeyBanc analyst John Vinh. During these meetings, the management at AMD exuded confidence in their growth trajectory and competitive position, particularly for the upcoming MI300X products, scheduled for a 2024 ramp-up.

Anticipated Growth in the GPU Market

The robust visibility into next year's launch of MI300X GPUs stems from significant lead times and confirmed purchase orders, assuring strong performance through the initial half of the fiscal year 2024. AMD's strategic position in inferencing, bolstered by a higher High Bandwidth Memory (HBM) content, was emphasized, hinting at an advantage over rivals such as Nvidia Corporation NVDA. This advantage is crucial, especially given the lack of supply constraints, which further supports the company's bullish outlook.

Data Center and AI Influence

AMD's server CPU market share is projected to continue its upward trajectory with notable support from Meta Platforms Inc META. The company's alignment with Taiwan Semiconductor Manufacturing Co TSM is seen as a significant strength, enabling AMD to maintain a competitive edge over Intel Corp INTC, despite Intel's advancement in the upcoming 18A process.

Looking at the broader semiconductor industry, a modest growth in unit volumes coupled with an increase in Average Selling Price (ASP) is estimated to be a key driver for market expansion. On the PC front, AMD predicts a recovery from the corrective phase, with share gains in the notebook sector and the emergence of AI-powered PCs to contribute to growth in 2024.

Collaborative Efforts with Microsoft and AI Integration

AMD has been collaborating with Microsoft Corp MSFT to optimize AI use cases, anticipating that AI PC launches in 2025 will stimulate a new cycle of technology refresh. This strategizing aligns with their aim to seize additional market share in the coming years.

Stock Performance and Outlook

Shares of AMD reflected positive investor sentiment, as noted in a recent 4.85% rise in stock price, underscoring market confidence in the company's strategic directions for the near future.

AMD, GPU, Revenue, 2024, MI300X, Market