AMD increases Instinct MI1300 sales guidance to $4 billion — pales in comparison to Nvidia's $40B projection

AMD
(Image credit: AMD)

AMD this week increased its datacenter GPU sales guidance by $500 million to $4 billion as the number of customers interested in its latest Instinct MI300-series processors is increasing. $4 billion sales of GPUs for AI and HPC applications is a lot of money in general, but it is a tiny fraction of what Nvidia will earn on its H100, H200, and B200 products. 

"[Instinct] MI300 demand continues to strengthen," said Lisa Su, chief executive of AMD, at the company's earnings call with financial analysts and investors (via SeekingAlpha). "Based on our expanding customer engagements, we netback data center GPU revenue to exceed $4 billion in 2024, up from the $3.5 billion we guided in January."  

AMD began to ship its Instinct MI300-series products in Q4 2023 (the first customers reported that they had received the compute GPUs in mid-January 2024). Its sales have surpassed $1 billion, according to AMD, which is in line with the company's expectations that the Instinct MI300-series would be its fastest product to $1 billion revenue. It is highly likely that AMD begain to ship its Instinct MI300 products in very late Q4 2023, so the majority of shipments were made in the first quarter of this year. Such a high adoption rate points to significant interest in the new series and AMD's conservative guidance about Instinct MI300's sales in 2024.

Meanwhile, it should be noted that AMD is not supply constrained with the Instinct MI300 and demand for the product is relatively modest at this point. 

"Our $4 billion number is not supply capped, […] we do have supply capability above that," said Su. "It is more back half weighted. So, if you are looking at sort of the near-term, I would say, for example, in the second quarter, we do have more demand than we have supply right now, and we are continuing to work on pulling in some of that supply."

Last week Intel guided that sales of its Gaudi 3 products will achieve $500 million this year, which is not much compared to how much its Xeon processors for datacenters earn. Gaudi 3 has yet to ramp, so it is possible that the processor will not have enough time to sell in huge quantities in 2024. 

Expectations for sales of AI processors by AMD and Intel pale when compared to what Nvidia is expected to make in 2024. Analysts believe that the company could sell $40 billion worth of datacenter GPUs.

It is noteworthy that while AMD's datacenter GPU sales look impressive, they are still considerably lower compared to sales of AMD's gaming solutions, comprising of AMD's system-on-chips for Microsoft's Xbox and Sony's PlayStation consoles, the company's discrete Radeon GPUs for desktops and laptops, and not including built-in Radeon graphics. Sales of AMD's gaming products exceeded a billion dollars per quarter for years and only dropped to $922 million this quarter.

Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

  • vanadiel007
    Crazy world when $4 Billion is considered not much...
    Reply
  • Eximo
    Depends how you look at it. Keep in mind that the people buying these devices expect a return on that investment.

    AMD: 233 Billion market cap. 6 billion in revenue last year, only 667 million net profit. ~26000 employees

    Nvidia 2.15 Trillion market cap. 22 billion in revenue last year, 12.28 billion net profit. Also ~26,000 employees

    As usual contractors, suppliers, etc and all their employees not listed, so how many people actually directly make a living off of their production is harder to put a figure too.

    But it shows you a rough estimate how much money it takes to turn a relatively small profit.
    Reply
  • ekio
    Since when, in a sane world, 4 billion is *pale* in comparison to anything ?

    What's the point of this article? Hey look, they are ridiculous, they are only very rich compared to other ones that are super very rich ?
    Reply
  • thisisaname
    Still better than Intel is doing.
    Reply
  • rluker5
    I wonder if this will get AMD around to fixing the leftover locals vulnerability that specifically affects the MI300 series in the context of LLMs?
    https://www.amd.com/en/resources/product-security/bulletin/amd-sb-6010.htmlhttps://leftoverlocals.com/Not really the best for AI cloud providers.
    Reply
  • NeoMorpheus
    ekio said:
    What's the point of this article?
    Simple, part of their daily routine to crap on AMD.

    Rarely any such articles are positive.
    Reply
  • NinoPino
    Admin said:
    AMD starts looking at sales of datacenter GPUs more optimistically, expects sales of Instinct MI300, other processors to top $4 billion in 2024.

    AMD increases Instinct MI1300 sales guidance to $4 billion — pales in comparison to Nvidia's $40B projection : Read more
    The title seems to be wrong or we are back from the future, it is written MI1300 instead of MI300.
    Reply
  • Pierce2623
    Isn’t getting 10% of the sales Nvidia is getting basically a straight up 9% market share gain from zero? That’s actually encouraging considering Nvidia was the only show in town.
    Reply
  • Pierce2623
    Eximo said:
    Depends how you look at it. Keep in mind that the people buying these devices expect a return on that investment.

    AMD: 233 Billion market cap. 6 billion in revenue last year, only 667 million net profit. ~26000 employees

    Nvidia 2.15 Trillion market cap. 22 billion in revenue last year, 12.28 billion net profit. Also ~26,000 employees

    As usual contractors, suppliers, etc and all their employees not listed, so how many people actually directly make a living off of their production is harder to put a figure too.

    But it shows you a rough estimate how much money it takes to turn a relatively small profit.
    Just for the record, Nvidia has 30,000 employees. Not 26,000. The AMD number is right. Considering Nvidia concentrates EVERYTHING on GPGPU computing and Radeon is a tiny shithole in the closet of the CPU department at AMD, it’s kind crazy AMD gets as close as they do in overall GPU performance. Intel…the less said the better.
    Reply
  • Colif
    NeoMorpheus said:
    Simple, part of their daily routine to crap on AMD.

    Rarely any such articles are positive.
    Didn't you know we have the writer of Userbenchmark working for us? No Good news for AMD without a reminder that someone else is a better choice.
    Reply