AMD’s Second Quarter Results

AMD recently announced its second quarter results, and while the earnings per share (EPS) figures weren’t adjusted, they still fell short of what analysts were hoping for. They’ve projected guidance between $8.4 billion and $9 billion for the third quarter, which is slightly more than what Wall Street was anticipating at $8.3 billion.

This release comes just before Nvidia, a major competitor, is set to report its own revenues later this month.

Interestingly, despite an optimistic outlook, AMD’s stock dropped over 4% following the news. Still, it’s worth noting that AMD shares have gained 44% and 29% annually over the last year, while Nvidia’s shares have risen by 32% and 77% in comparison.

For the quarter, AMD posted an adjusted EPS of $0.48 with revenues reaching $7.6 billion. Analyst expectations had been for an EPS of $0.49 and revenues of $7.4 billion, according to Bloomberg Consensus.

Moreover, AMD reported an $800 million hit due to the Trump administration’s ban on the sale of its MI308 AI chip to China. This contributed to an operating loss of $155 million for the quarter.

On the other hand, Nvidia faced a $4.5 billion impact from the same ban in the first quarter and anticipates an $8 billion loss for the second quarter.

There was a shift in policy last month, which might help AMD recover some of those losses in the upcoming quarter.

AMD is also gearing up for the launch of its MI350 AI chip line, which is expected to compete directly with Nvidia’s offerings. The new MI350 line, including the MI350X and MI355X, reportedly delivers four times the AI calculation performance and a 35-fold increase in inference ability compared to its predecessor.

The company’s data center revenue rose to $3.2 billion, aligning with Wall Street expectations, up from $2.8 billion last year.

Additionally, AMD’s client business—covering sales of CPUs for desktops and laptops—brought in $3.6 billion, exceeding the expected $2.5 billion.