AMD's Gaming Business Is Struggling
Most investors were focused on Advanced Micro Devices' (NASDAQ: AMD) AI accelerator business when the company reported its fourth-quarter results on Tuesday. The company expects to sell at least $3.5 billion of data center GPUs in 2024, and it has enough supply to satisfy additional customer demand beyond that number.
While AMD's artificial intelligence chip business is set to boom this year, other parts of the company are likely to struggle. The gaming business, which is comprised of gaming GPUs and semi-custom chips that power the major video game consoles, is going to have a rough year even as AMD expects overall revenue to grow.
AMD's semi-custom chips power both Sony's PlayStation 5 and Microsoft's latest Xbox game consoles. The chips combine AMD's Zen 2 CPU architecture and its RDNA 2 graphics architecture into a single package.
Source Fool.com
Advanced Micro Devices Inc. Stock
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