Chip manufacturers are leaving aside the manufacture of processors for personal computers, in order to bet on the development of Artificial Intelligence (AI).
In the first quarter of the year, companies in the sector experienced drops in their income and profits, due to a reduction in the demand for computers for homes and offices.
However, its cloud services and AI divisions reported double-digit sales growth during the same period.
NVIDIA, the leading company in the sector, detailed a 15% decrease in its first quarter profits, mainly due to the 113% increase in its operating expenses, which amounted to 3,563 million dollars.
It reported to NASDAQ that revenues from its data center services grew more than 83% year-on-year, going from 2,048 to 3,750 million dollars, and it is the division that left the company the most money in the first quarter.
“We had a rising wave of innovation from our customers, the use of various languages and models are driving increased demand for artificial intelligence and graphics processing units for cloud services,” they wrote in their report.
Currently, NVIDIA is the leading company in the development of hardware dedicated to AI, as it has top-of-the-range products such as the H100 processor and its iterations, being the first company that developed infrastructure dedicated to AI in the world.
AMD, the second most relevant company in the development of AI, reported a 65.2% drop in its sales of chips for personal computers, from 2,124 to 739 million dollars, as well as a 118% decline in its quarterly earnings.
AMD’s data center division already accounts for more than 24% of the company’s revenue, and while it grew just 0.15% year-over-year, it already outpaces its business of making chips for home computers and office automation by 1.75 times. .
“We launched multiple products and made significant progress accelerating the development of Artificial Intelligence,” AMD CEO Lisa Su wrote in her report to NASDAQ.
Intel, AMD’s direct competitor, has also carried out a restructuring of its divisions, since its cloud services and Artificial Intelligence business already amounts to 3,718 million dollars and represents 32% of all its sales.
“The data center business will benefit the most from the integration of AI, since this technology uses large amounts of data to be able to process the requests and tasks that are asked of it with greater efficiency and speed,” Kevin said. Ortiz, independent analyst.
