Yazılar

AMD falls as dour forecast shows cracks in AI trade

/in /tarafından

Shares of Advanced Micro Devices slid after the chipmaker issued a cautious quarterly sales outlook, reviving investor concerns about its ability to challenge AI leader Nvidia. AMD forecast first-quarter revenue of about $9.8 billion, slightly above expectations but down from the prior quarter, signaling uneven momentum in its AI-driven growth.

The reaction came amid broader market anxiety over artificial intelligence spending, as investors question whether massive outlays are translating into near-term productivity gains. While AMD benefited from a late boost in China-bound AI chip sales, analysts noted that without those deliveries its data center results would have fallen short.

AMD executives said demand for next-generation AI servers should accelerate in the second half of the year, including shipments to OpenAI. Still, the muted outlook contrasted sharply with upbeat signals from AI server makers, highlighting growing scrutiny over which companies can turn AI demand into sustained earnings growth.

Western Digital expands buyback by $4 billion as AI drives chip demand

/in /tarafından

Data storage maker Western Digital said its board has approved an additional $4 billion for share repurchases, citing strong demand for memory chips used in artificial intelligence servers. The announcement pushed shares up about 5% in premarket trading, extending a rally that has already lifted the stock sharply over the past year.

The company said the new authorization adds to an existing buyback program, under which roughly $484 million remained available as of earlier this week. Western Digital shares have surged on expectations that AI-driven data center investment will continue to boost demand for storage products, including hard drives and flash memory.

A global shortage of memory chips has intensified competition for supply, particularly from AI developers and consumer electronics makers. Limited manufacturing capacity and longer lead times have driven prices higher, benefiting suppliers positioned to serve the fast-growing AI server market.

Western Digital recently forecast fiscal third-quarter revenue and profit above Wall Street expectations, pointing to strong sales of storage solutions for AI workloads. Management said the buyback expansion reflects confidence in cash generation and long-term demand trends tied to artificial intelligence infrastructure.

Apple warns rising memory costs as AI chip demand tightens supply

/in /tarafından

Apple warned that increasing memory chip prices are beginning to weigh on profitability, as major suppliers shift production toward higher-margin chips used in artificial intelligence systems. Chief executive Tim Cook said market pricing for memory has risen sharply and is expected to have a greater impact in the current quarter, following only limited effects during the key holiday period.

The comments echo recent warnings from South Korean chipmakers Samsung Electronics and SK Hynix, which together dominate the global DRAM market. Both companies have been prioritising high-bandwidth memory used in AI servers, tightening supply of conventional DRAM chips used in smartphones, personal computers, and consumer electronics.

Apple is likely to require more memory components as demand for its latest iPhone models remains strong, particularly in China and India. However, the company declined to say whether higher component costs could translate into increased product prices. Analysts warn that sustained memory shortages could pressure margins across the consumer electronics sector and disrupt supply chains.

Chipmakers have also become more cautious about expanding capacity after years of aggressive investment, limiting the pace at which supply can respond. As AI infrastructure spending accelerates, memory availability for traditional devices is expected to remain constrained, contributing to weaker outlooks for global smartphone and PC shipments in the coming years.