XM does not provide services to residents of the United States of America.

AMD to cut 4% of global workforce as it focuses on AI chip development



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>AMD to cut 4% of global workforce as it focuses on AI chip development</title></head><body>

Nov 13 (Reuters) -Advanced Micro Devices AMD.O is laying off 4% of its global workforce, or about 1,000 employees, as it directs efforts towards developing AI chips in a bid to compete against industry bellwether Nvidia NVDA.O.

AMD is regarded as the closest rival to Nvidia in the lucrative market for chips that form the brains of complex data centers that can process the large mounds of data used by generative AI technology like OpenAI's ChatGPT.

"As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps," an AMD spokesperson told Reuters on Tuesday.

Revenue in AMD's data center segment, which houses its AI graphics processors, jumped more than two-fold in the September quarter. On the other hand, the personal computer segment grew 29%, while sales in its gaming unit slumped about 69% during the period.

Analysts expect the data center unit to grow 98% in 2024, outpacing expected total revenue growth of 13%, according to an average of estimates compiled by LSEG.

The company has been investing heavily to develop AI chips which command high selling prices and are in high demand among so-called hyperscalers like Microsoft MSFT.O.

AMD plans to start mass production of a new version of its artificial-intelligence chip called the MI325X in the fourth quarter of the year. Ramping up production of AI chips is an expensive undertaking due to constrained manufacturing capacity.

The company's research and development costs jumped close to 9% in the third quarter, while its total cost of sales rose by 11%.

Shares of AMD have dropped more than 3% so far this year, as the company struggles to live up to investors' high expectations after Wall Street drove a two-fold surge in its shares last year, betting on the returns linked with AI technology.



Reporting by Arsheeya Bajwa in Bengaluru and Max Cherney in San Francisco; Editing by Maju Samuel

</body></html>

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.