AMD Soars as AI Chip Sales Prediction Bodes Well for Rivalry with Nvidia

A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)
A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)
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AMD Soars as AI Chip Sales Prediction Bodes Well for Rivalry with Nvidia

A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)
A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. (Reuters)

Shares of Advanced Micro Devices jumped 8% on Wednesday, after an upbeat AI chip sales forecast signaled the company was making progress in its bid to catch up with market leader Nvidia.

The optimism over AI chip sales helped ease worries about a disappointing fourth-quarter forecast and put it on course for market value gains of nearly $13 billion, based on the $106.41 share price.

CEO Lisa Su on Tuesday provided a 2024 sales forecast for the first time for the MI300 chips, designed to compete against the advanced H100 chips sold by Nvidia.

She projected annual sales of more than $2 billion, and raised the chip's current-quarter revenue expectations by $100 million.

That would make the MI300 the fastest product to ramp to $1 billion in sales in AMD's history.

"Hitting this milestone is likely a key first step towards proving AMD is the clear second source to Nvidia in the AI accelerator market," said analysts at TD Cowen.

The CEO also said the MI300 chips had won commitments from "multiple, large hyperscale customers", a term that refers to large tech and cloud computing companies.

AMD's shares have gained 61% this year through last close, but those gains pale in comparison to Nvidia's 184% rally.

Still, the conservative forecast and weakness in several of AMD's markets led at least 18 analysts to cut their price targets on the stock, pushing down the median view to $130, per LSEG data.

"Forecasts were below our prior estimates ... and it's quite possible that such estimates could be conservative," Morningstar analyst Brian Colello said.

While the PC market has been seeing signs of recovery, a weak gaming market and decline in demand for programmable chips used by industries such as wireless communications, healthcare and automotive have been a drag.



Meta to Introduce Teen Accounts for Facebook

Figurines with computers and smartphones are seen in front of Facebook logo in this illustration taken, February 19, 2024. (Reuters)
Figurines with computers and smartphones are seen in front of Facebook logo in this illustration taken, February 19, 2024. (Reuters)
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Meta to Introduce Teen Accounts for Facebook

Figurines with computers and smartphones are seen in front of Facebook logo in this illustration taken, February 19, 2024. (Reuters)
Figurines with computers and smartphones are seen in front of Facebook logo in this illustration taken, February 19, 2024. (Reuters)

Meta on Tuesday announced that it was extending its teen accounts to its social network Facebook, after recently introducing restrictions on Instagram.

The accounts were brought in for 13- to 15-year-old users of the company's popular photo-sharing app last September as part of moves to shield vulnerable underage internet users from online harms.

Teens are immediately placed in such accounts, with those under 16 unable to change settings without parental permission.

In a statement, Meta said it was expanding the restrictions in the coming months to stop teens from going live or turning off protections for unwanted images in direct messages on their own.

"Teen Accounts on Facebook and Messenger will offer similar, automatic protections to limit inappropriate content and unwanted contact, as well as ways to ensure teens' time is well spent," it added.

The accounts will initially be available in the United States, Britain, Australia and Canada, then other countries at a later date.

At least 54 million teenagers currently have a teen account, which also limits overnight notifications and have reminders to leave the app after an hour.

Users can only be messaged by people they follow or are already connected to.

Adolescent use of social networks has prompted concern in recent years, notably about the amount of screentime and lack of moderation on some platforms.

In November last year, Australia's parliament voted in favor of a ban on under 16s from using social networks.

TikTok recently launched a function in the European Union allowing parents to limit the amount of time that teenagers spend on the app.