Lisa Su, CEO of Advanced Micro Devices, and Sam Altman, CEO of OpenAI, testifiy during the Senate Commerce, Science and Transportation Committee proceeding titled "Winning the AI Race: Strengthening U.S. Capabilities successful Computing and Innovation," successful Hart gathering connected Thursday, May 8, 2025.
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Advanced Micro Devices reported 4th net connected Tuesday that missed estimates. The banal slid astir 4% successful extended trading.
Here's however the chipmaker did versus LSEG expectations for the 4th ended June:
- Earnings per share: 48 cents adjusted versus 49 cents expected
- Revenue: $7.69 cardinal versus $7.42 cardinal expected
For the existent quarter, AMD expects income of $8.7 billion, positive oregon minus $300 million, versus expectations of net of $8.3 billion.
AMD reported nett income during its fiscal 2nd 4th of $872 million, oregon 54 cents per share, expanding from $265 million, oregon 16 cents per stock successful the year-ago period. Nvidia's wide income roseate 32% successful the play from $5.84 cardinal a twelvemonth earlier.
AMD is the second-biggest shaper of graphics processing units (GPUs) for artificial quality down Nvidia, which has the immense bulk of the market. But large AI customers specified arsenic Meta and OpenAI are progressively looking to AMD to supply an alternate to Nvidia's pricey chips, particularly for inference, oregon erstwhile AI models are deployed to the public.
During the quarter, AMD announced caller AI chips called the MI400 that are expected to deed the marketplace adjacent year. OpenAI CEO Sam Altman committed to utilizing AMD's newest GPUs.
AMD is besides grappling with spot export controls which person been placed connected immoderate of its AI chips due to the fact that the U.S. authorities worries that almighty GPUs could beryllium utilized by adversaries to surpass American capabilities oregon beryllium utilized for subject purposes.
The MI308 was antecedently barred for export to China successful April, which the institution said outgo it $800 cardinal successful the June quarter. However, the institution said successful July that it expected shipments to resume aft the Trump medication signaled that it would o.k. waivers. AMD said its outlook doesn't see immoderate gross from its China-focused AI spot called the MI308 and its licence applications are presently being reviewed by the Department of Commerce.
AMD's adjusted gross borderline during the 4th was 43%. The institution said it would person been 54% if not for export power costs.
AMD's main business, speech from GPUs, is making cardinal processors, called CPUs, which vie with Intel to powerfulness much accepted servers.
Both are reported successful the company's information halfway segment, which had $3.2 cardinal successful revenue, up 14% connected an yearly basis.
The different large conception for AMD is called Client and Gaming, which includes the company's CPUs for laptops and desktops, and its GPUs for 3D gaming. That was up 69% connected an yearly basis, partially driven by beardown request for the company's latest desktop CPUs, which it calls AMD Ryzen Zen 5.
Gaming gross by itself was $1.1 billion, up 73% connected an yearly ground owed to accrued request for customized chips for crippled consoles and gaming GPUs, AMD said.
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