AMD reported revenue of $7.69 billion for the second quarter of fiscal year 2025, surpassing estimates of $7.42 billion. Earnings per share were 47 cents, just under the expected 47.9 cents. Despite a year-to-date share price increase of over 40 percent, investors were disappointed with the data center division's revenue growth of 14 percent. Major competitors like Nvidia outperformed AMD, impacting investor sentiment. Strong AI chip demand continues, yet AMD's sales are lagging, affected by export restrictions and new product transitions. The company forecasts approximately $8.7 billion in revenue for the third quarter.
AMD reported second quarter revenue of $7.69 billion, exceeding expectations, yet the negative market reaction highlighted investor concerns over data center performance and competition.
Despite an overall revenue increase of over 30 percent year-over-year, the data center division's growth was underwhelming compared to Nvidia's significant gains.
AMD's earnings per share of 47 cents were slightly below expectations, contributing to a negative response in after-hours trading, where shares dropped over six percent.
Growing demand for AI chips remains strong with major companies investing heavily, yet AMD's AI chip sales have not significantly benefited due to export restrictions and product transitions.
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