{"id":61296,"date":"2025-08-05T23:26:14","date_gmt":"2025-08-05T23:26:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/61296\/"},"modified":"2025-08-05T23:26:14","modified_gmt":"2025-08-05T23:26:14","slug":"amd-posts-mixed-q2-results-but-offers-better-than-expected-q3-outlook-on-ai-sales","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/61296\/","title":{"rendered":"AMD posts mixed Q2 results but offers better-than-expected Q3 outlook on AI sales"},"content":{"rendered":"\n

AMD (AMD<\/a>) reported its second quarter results<\/a> after the bell on Tuesday, missing on adjusted earnings per share (EPS) but beating analysts’ expectations on revenue. The company also provided better-than-anticipated Q3 guidance of between $8.4 billion and $9 billion. Wall Street was expecting $8.3 billion.<\/p>\n

The announcement comes ahead of rival and market leader Nvidia’s (NVDA<\/a>) earnings report later this month.<\/p>\n

Despite the strong outlook, AMD’s stock price fell more than 4% following the news. The company’s shares are up 44% year to date and 29% over the past 12 months. Nvidia shares are up 32% and 77%, respectively.<\/p>\n

Read more: Live coverage of corporate earnings<\/a><\/p>\n

For the quarter, AMD saw adjusted EPS of $0.48 on revenue of $7.6 billion. Wall Street was expecting EPS of $0.49 on revenue of $7.4 billion, according to Bloomberg consensus estimates.<\/p>\n

AMD said it saw an $800 million impact from the Trump administration’s ban on the sale of the company’s MI308 AI chips to China. That resulted in an operating loss of $155 million in the quarter.<\/p>\n

Nvidia took a $4.5 billion write-down from the ban in Q1 and said it expects an $8 billion hit in its second fiscal quarter.<\/p>\n

Trump reversed course on the ban last month, which should help make up for some of those losses in the coming quarters.<\/p>\n

\"Lisa AMD chair and CEO Lisa Su delivers the opening keynote speech at Computex 2024, Taiwan’s premier tech expo, in Taipei on June 3, 2024. (I-Hwa Cheng\/AFP via Getty Images) \u00b7 I-HWA CHENG via Getty Images <\/p>\n

AMD should also benefit from the launch of its MI350 line of AI chips<\/a>, designed to go toe-to-toe with Nvidia’s Blackwell-powered chips. According to AMD, the MI350 line, which includes the MI350X and MI355X, offers four times the AI compute performance and a 35x increase in inferencing capabilities versus its predecessors.<\/p>\n

AMD’s Data Center segment revenue topped out at $3.2 billion, meeting Wall Street’s expectations. The company saw $2.8 billion in the segment last year.<\/p>\n

Beyond the Data Center segment, AMD’s Client business, which includes sales of CPUs for desktops and laptops, generated $3.6 billion in revenue versus an anticipated $2.5 billion.<\/p>\n

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