On Tuesday, Advanced Micro Devices reported second-quarter earnings.
Investors want to see AMD wrest market share from longtime rival Nvidia with its MI300X AI chip and signal growth in its data center AI business.
AMD said it sold more than $1 billion of its MI300 chips during the quarter, and its data center category grew 115% year over year.
It reported second-quarter earnings on Tuesday that beat Wall Street expectations for revenue and showed continued growth in sales of the company’s AI chips.
AMD shares rose 8% in extended trading.
Here’s how AMD did against LSEG consensus expectations for the quarter ended June 29
Earnings per share: 69 cents adjusted vs. 68 cents expected
Revenue: $5.84 billion vs. $5.72 billion expected
It expects sales of about $6.7 billion in the current quarter, versus Wall Street’s approx. of 93 cents in earnings per share on sales of $6.61 billion. AMD said.
The chipmaker reported net income of $265 million, or 16 cents a share, versus $27 million, or 2 cents a share, in the year-ago period.
AMD shares are down about 6% year-to-date, even though the company is the second-largest seller of data center graphics processing units (GPUs) behind Nvidia.
. Nvidia’s stock has more than doubled this year as AI is essential for training GPUs and deploying advanced AI like ChatGPT, and Nvidia has become the chip of choice.
AMD CEO Lisa Su said on a call with analysts that the company saw “better-than-expected” sales of its AI chips and that revenue from its MI300 chips exceeded $1 billion during the quarter.
“As a result, we now expect data center GPU revenue to exceed $4.5 billion in 2024, up from our guidance of $4 billion in April,” Su said in a call with analysts.
