AMD’s Q2 Earnings Fall Short Despite Outperforming Revenue Expectations
Advanced Micro Devices (AMD) reported a mixed bag of results for the second quarter, leading to a 5% dip in shares during extended trading. The chipmaker’s revenue of $7.63 billion surpassed Wall Street’s estimates of $7.41 billion. However, the adjusted earnings per share of 48 cents didn’t meet the anticipated 50 cents.
AMD faced significant challenges due to U.S. export restrictions, which effectively wiped out MI308 AI chip sales to China. This resulted in a loss of approximately $800 million for the quarter. CEO Lisa Su pointed out that the “AI business revenue declined year over year” as a result of these restrictions and the company’s shift to next-generation chips.
Despite these hurdles, AMD demonstrated resilience in its gaming segment. Revenue in this sector rose by 73% year-over-year, reaching $1.1 billion. This surge was primarily driven by an increased demand for custom console chips and gaming GPUs.
AMD has announced the launch of new AI chips, dubbed the Instinct MI400, expected to hit the market next year. This move is part of AMD’s ongoing competition with Nvidia in the artificial intelligence chip market.
Source: CNBC