AMD solely introduced its Intuition MI300, arguably the corporate’s first actually aggressive GPU for AI inferencing and coaching, again in November final yr. It is actually solely been promoting in large numbers for the previous couple of months. However already its bringing in about as a lot cash as AMD’s total CPU operations.
That features CPUs for servers, CPUs for cloud computing, for desktop PCs, for laptops, the works. So says AMD’s CEO Lisa Su, talking on the firm’s most up-to-date earnings name for monetary wonks, held yesterday (through Searching for Alpha).
Su was responding to a high-ranking bean counter from Swiss financial institution UBS, who was making an attempt to drill down into precisely how a lot cash AMD has been raking in over latest months particularly from its nascent AI GPU operations.
The analyst reckoned AMD in all probability notched up within the area of $1.5 billion in revenues for September alone and speculated that following months have to be much more. To which Su had this to say:
“We truly did higher within the Information Heart GPU enterprise relative to our preliminary expectations. So, you’d think about that the enterprise was truly better than $1.5 billion [in September of this year]. I imply, we’re truly seeing now our [AI] GPU enterprise actually approaching the dimensions of our CPU enterprise.”
That is some achievement and little question helps clarify why AMD’s share worth is about 2.5x what it was in mid 2022. In fact, all the pieces is relative. Whereas AMD’s burgeoning AI GPU gross sales look stellar in isolation, they pale in comparison with Nvidia’s.
In the identical investor name, one other analyst identified that Nvidia would seemingly obtain an unbelievable $50 to $60 billion in AI GPU gross sales in 2025, whereas AMD would possibly simply hit $10 billion at greatest.
Nonetheless, nevertheless you slice it something particularly to do with gaming looks like awfully small beer for AMD lately. Revenues for its “Gaming” enterprise, which incorporates not solely gaming graphics playing cards for PCs but additionally the customized AMD-engineered APUs contained in the Xbox and PlayStation consoles, amounted to only $462 million in the newest quarter.
That represents simply 6.8% of AMD’s total revenues. And shrinking. Likewise, AMD’s CPUs for desktop and laptop computer PCs pulled in almost $2 billion over the identical interval.
It does all make you surprise how motivated AMD will be in relation to GPUs for PCs when there’s a lot more cash to be made elsewhere. Then again, there is no assure that the AI GPU market will proceed to growth. And graphics chips for PCs are a long-term core competence for AMD.
So, this is hoping AMD is absolutely dedicated to bettering its gaming graphics. We’ll discover out quickly sufficient in relation to AMD’s next-gen playing cards, what with Lisa Su confirming that RDNA 4, seemingly within the type of the Radeon RX 8800 XT, will arrive “early” in 2025.
