AMD, the second-largest maker of PC processors, has topped second-quarter estimates and said it was making further inroads in artificial intelligence computing.
Second-quarter earnings were US$0.58/share, excluding some items, compared with an estimate of $0.57. Revenue came in at $5.36-billion, versus a projection of $5.32-billion.
The company pointed to gains in AI accelerators, an area dominated by Nvidia. “Our AI engagements increased by more than seven times in the quarter as multiple customers initiated or expanded programmes supporting future deployments of Instinct accelerators at scale,” CEO Lisa Su said in a statement.
Third-quarter revenue will be $5.4-billion to $6-billion, the company said. That compares with an average analyst estimate of $5.84-billion.
Data centre demand
AMD expects data centre demand to improve in the second half of the year, countering fears that customers will hold off on server spending in favour of new AI technology.
The shares about 3% in extended trading following the announcement. They had closed earlier at $117.60, leaving the stock up 82%, a gain that’s made it the second-best performing stock on the Philadelphia Stock Exchange Semiconductor Index this year. — (c) 2023 Bloomberg LP
