AMD shares fall after Q2 profit misses estimates
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The news: Advanced Micro Devices reported second-quarter revenue of USD7.69 billion ($11.9 billion), up 32% from a year earlier, but said adjusted profit came at 48 cents per share, missing estimates.
The numbers: Analysts polled by LSEG had expected revenue of USD7.42 billion and adjusted income of 49 cents per share.
AMD also forecast third-quarter revenue of about USD8.7 billion, topping analyst estimates but excluding any sales of its MI308 AI chips to China as license applications are still under review by the US government.
Shares fell about 4% in extended trading following the announcement.
Data centre sales rose 14% to USD3.2 billion, client revenue climbed 57% to USD2.5 billion and gaming revenue increased 73% to USD1.1 billion.
The context: AMD, the second-largest maker of AI accelerator chips, is pushing to capitalise on increased AI infrastructure spending by cloud firms like Microsoft and Meta.
However, US export restrictions on advanced chips to China, imposed in April and partially eased recently, have limited AMD’s ability to sell the MI308. CEO Lisa Su said revenue from AI business declined year-on-year due to those restrictions.
During the quarter, AMD launched its next-generation MI400 chips, due in 2026, which OpenAI’s Sam Altman has committed to use.
The sources: AMD release, Bloomberg
