Advanced Micro Devices, Inc. (AMD)
AMD will lay off nearly 1,000, or 4% of staff, as AI competition heats up
AMD said today it will lay off 4% of its global staff, or perhaps somewhat less than 1,000 of its estimated 26,000-person workforce.
AMD to cut 4% of workforce, impacting around 1,000 employees
AMD announced on Wednesday that it will reduce its global workforce by 4%, marking a strategic move to focus more on the rapidly growing artificial intelligence (AI) chip sector, currently dominated by Nvidia.
AMD to shed over 1,000 jobs as AI push accelerates
Chipmaker Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) has confirmed that it is shedding 4% of its global workforce as part of its shift towards artificial intelligence applications. “As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps that will unfortunately result in reducing our global workforce by approximately 4%,” AMD said in a statement published by Bloomberg.
AMD to lay off 4% of workforce, or about 1,000 employees
At the end of last year, AMD had 26,000 employees, according to an SEC filing.
AMD to cut 4% of global workforce as it focuses on AI chip development
Advanced Micro Devices 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.
AMD lays off 4% of its workforce
AMD has confirmed that it's laying off 4% of its workforce to focus on “large growth opportunities.”
Where Will AMD Stock Be in 5 Years?
The chipmaker has delivered solid gains in the past five years, and a closer look at its prospects indicates more possible upside in the future.
Wall Street predicts AMD stock price for next 12 months
After a range of new products unveiled at the ‘Advancing AI 2024' event sparked optimism in early October, Advanced Micro Devices' (NASDAQ: AMD) latest earnings report sent the company's shares across a rough patch in the stock market.
AMD: Lagging AI Growth Shouldn't Last
Advanced Micro Devices, Inc.'s Data Center revenue is surging due to AI demand, but overall growth lags Nvidia, impacting stock performance. Gaming and Embedded segments are struggling, but Data Center sales are expected to drive future growth, with no sizable segment dragging the business down going forward. AMD stock only trades at 21x '26 EPS targets with substantial upside to estimates, if new GPUs like the Mi350 take market share at lower price points.
Why The Market Doesn't Care About AMD's AI Revenue
Despite its strong AI accelerator technical performance, Advanced Micro Devices, Inc. struggles to compete effectively in terms of market share and absolute dollars. Its Data Center operating margins aren't competitive internally, let alone against Nvidia. AMD requires significantly more R&D as a percent of revenue to be a distant second than Nvidia requires maintaining the lead.
3 Growth Stocks Down 34% to 62% to Buy Right Now
This diverse group of companies has positioned itself for considerable gains over time.
AMD: Recent Correction Provides New Opportunity
AMD's recent earnings result showed strong potential for its Data Center business and, specifically, its AI chips. The company projected $5 billion in AI chip revenue for 2024, which is up from $4.5 billion in earlier projections. AMD is in a good spot to deliver over $10 billion in AI chip revenue in 2025 and will likely be a main competitor for Nvidia in this segment.
