AMD Projects Higher Q2 Revenue with Strong AI Chip Demand

Published 15 hours agoAMD

AMD Projects Higher Q2 Revenue with Strong AI Chip Demand

AMD has announced a promising revenue projection for its second quarter, expecting to reach approximately $7.4 billion. This figure surpasses Wall Street's forecast of $7.25 billion. AMD attributes this optimistic outlook to surging demand for its artificial intelligence chips, particularly from cloud computing powerhouses like Microsoft and Meta Platforms, as noted by Reuters.

Reuters reported key details of the announcement, stating AMD anticipates second-quarter revenue of about $7.4 billion, which is above analysts' average estimate. This growth is largely driven by increasing interest in AMD's AI chips for data centers. In response to the announcement, AMD's stock jumped by 6% during after-hours trading, showcasing investor confidence.

To bolster its market position against competitors like Nvidia, AMD emphasizes its capability to serve major AI chip clients effectively. However, AMD is also facing a potential $800 million charge due to U.S. restrictions on exporting advanced processors to China. Despite this, AMD remains optimistic, expecting a robust adjusted gross margin of 54% excluding the charge, or 43% if included.

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