AMD said in its latest Q1 2024 earnings forecast that revenue increased thanks to powerful AI capabilities, however, they reported a decline in console sales. Including sales of graphics cards such as AMD Radeon itself, have decreased and this has also had an impact. This forced the company to change its forecast by more than 30% in the first and second quarters of 2024.
Meanwhile, the company’s data center business grew 80% over last year and reached $2.3 billion in revenue. Driven by sales of the MI300 series GPU chips, now is an incredibly exciting time for the industry thanks to the widespread adoption of artificial intelligence. But if you look at the gaming segment instead the demand is relatively low. It comes from a number of reasons. (One of them being inventory issues) forced AMD to cut its estimates by more than 30% in the first and second quarters, and that’s how we’re looking at the gaming business this year.
Microsoft itself just reported that hardware sales (Xbox) were down 31%. As for Sony, the same PlayStation 5, although no sales figures have been released. But the sales target must also be revised downwards.
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