AMD says report of AWS ‘not yet’ seeing heavy demand is ‘not accurate’

AMD (NASDAQ:AMD) said last week’s report that contained comments made by an Amazon Web Services (NASDAQ:AMZN) executives that it has “not yet” seen heavy demand for the former’s artificial intelligence accelerators is “not accurate.”

“We have a great relationship with AWS and the report was not accurate – we are actively engaged with AWS and end customers on AI opportunities,” an AMD spokesperson told Seeking Alpha via email on Monday.

Shares of the Dr. Lisa Su-led AMD fell 5% in midday trading on Monday, as investors expressed concern over comments made by Gadi Hutt, who works at Amazon’s semiconductor unit Annapurna Labs.

“If customers have strong indications that those are needed, then there’s no reason not to deploy,” Hutt told Business Insider last week. Hutt, who is Annapurna’s Director of Product and Customer engineering, added that Amazon Web Services has “not yet” seen high demand for AMD’s chips.

Separately on Monday, Bank of America downgraded AMD shares due in part to the story, as well as concerns about the company’s standing in the PC space.

AMD showed off its first AI accelerator last December, the MI300x. The newest version, the MI325X, is on track to be sent to customers in the current quarter.

The company upped its 2024 guidance in October and said it would generate $5B in revenue from its AI accelerators, up from a previous view of $4.5B.