AMD Beats Q3 Revenue Forecasts but Shares Dip on AI Chip Licensing Delays

Advanced Micro Devices Inc. projected third-quarter revenue of approximately $8.7 billion, surpassing Wall Street estimates. Despite the bullish outlook, shares slipped 4% in after-hours trading as China export licenses for its MI308 AI processors remain pending with U.S. regulators.

The semiconductor giant has gained over 40% year-to-date, dwarfing the 12% rise in the benchmark chip index, fueled by soaring demand from AI infrastructure builders. Microsoft and Meta Platforms are among the tech titans deploying AMD's processors for AI workloads, with both companies significantly boosting capital expenditures to expand data-center capacity.

While AMD's revenue guidance excludes potential China sales due to export restrictions, the company stands ready to resume shipments upon regulatory approval. The Commerce Department's licensing decision could unlock substantial additional revenue streams in future quarters.