Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) reported stronger-than-expected second-quarter earnings, driven by robust demand for its artificial intelligence (AI) chips.
The company's positive performance led to a forecast of third-quarter revenue that exceeds analyst expectations.
AMD's second-quarter earnings per share (EPS) came in at $0.69, surpassing the forecast of $0.68. Revenue for the quarter reached $5.84 billion, also beating estimates of $5.7 billion.
Following the announcement, AMD's stock rose almost 5% in after-hours trading.
Adjusted operating income stood at $1.26 billion, slightly above the forecast of $1.25 billion. Research and development (R&D) expenses matched estimates at $1.58 billion, while capital expenditures (Capex) were $154 million, exceeding the expected $127.1 million.
Looking ahead, AMD has raised its third-quarter revenue guidance to a range of $6.4 billion to $7 billion, above the consensus estimate of $6.62 billion. The company also forecasted an adjusted gross margin of approximately 53.5% for Q3.
One of the standout highlights from the earnings report was the performance of AMD’s data center segment, which saw an impressive 100% year-over-year growth.