These AMD layoffs news came after the Q3 earnings report, in which AMD processors and chip maker company recorded an increase in revenue and also in profit, but the gaming division of the company experienced a 69% yearly decline.
According to an estimate collected by LSEG, most analysts expect that the data center unit will grow by 98% in 2024, surpassing the total revenue growth expected of 13%.
It’s worth mentioning that the AMD AI chip company focused until now on investing in developing artificial intelligence chips, which are currently in high demand and have premium prices, particularly among giants like Microsoft.
The AMD AI chip maker is planning to initiate mass production for the new version of the artificial intelligence chips, MI325X, starting within Q4 of this year. It’s important to know that the production of AI chips represents an expensive project especially due to the limited manufacturing capacity.
The AI chip maker company’s research and also development costs have increased up to almost 9% in the Q3 reports, while AMD’s total cost of sales grew up to 11%. Also, AMD shares recorded a drop of more than 3% this year because the AI chip maker company is currently struggling to meet the high expectations of investors.
Also, the AMD stock recorded a 4% decrease for this year.
Stay tuned for more AMD news about the AMD jobs situation!
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