AMD anticipates that its revenue for the third quarter will surpass analysts' expectations due to growing demand for AI chips.
Revenue Expectations for Q3
AMD expects to generate approximately $8.7 billion in revenue for Q3, which is $300 million more than analysts' forecasts of $8.3 billion. However, shares fell about 4% in after-hours trading, as the forecast did not meet some investors' expectations.
Export License Issues with China
The outlook does not include sales of its MI308 chips to China, as export licenses are still pending review by the U.S. government. In April, Washington imposed restrictions requiring a license for the export of advanced AI processors to China, and the Commerce Department is currently assessing AMD's applications.
AMD's Prospects and Competitiveness
Under CEO Lisa Su's leadership, AMD has greatly increased its market standing, surpassing Intel's market capitalization by $200 billion. However, Nvidia continues to lead the market with its dominance in AI accelerators. Su also emphasized the importance of maintaining a balance between export controls and ensuring widespread access to technology, which is vital for the U.S. economy.
Overall, AMD continues to strengthen its position in the technology and artificial intelligence markets despite challenges related to export regulations and competition.
