AMD Posts Mixed Q2 Results but Offers Strong Q3 Outlook on AI Sales
AMD reported Q2 earnings that missed on adjusted EPS ($0.48 vs. $0.49 expected) but beat revenue estimates ($7.6B vs. $7.4B). The chipmaker's Q3 guidance of $8.4B-$9B surpassed Wall Street's $8.3B forecast, driven by AI-related sales. Shares fell 4% post-announcement despite a 44% YTD gain.
The company absorbed an $800M hit from U.S. chip export bans to China, resulting in a $155M operating loss. Rival Nvidia faced larger impacts—$4.5B in Q1 with an $8B Q2 projection—though recent policy reversals may mitigate future losses.
AMD's performance underscores the semiconductor sector's volatility amid geopolitical tensions and AI demand surges. The stock's 29% annual gain trails Nvidia's 77% rise, reflecting divergent market positioning in the AI hardware race.
