Advanced Micro Devices said on Tuesday it expects third-quarter revenue to exceed Wall Street forecasts, as businesses rush to beef up their artificial intelligence chip infrastructure.
In after-hours trading, shares of the Santa Clara, California-based company fell about 4%, as the forecast failed to meet some investor expectations, according to Reuters.
Year to date, AMD shares have jumped over 40%, far outpacing a roughly 12% gain in the benchmark chip index, as investors wager on its role in the AI boom.
Companies such as Microsoft, Meta Platforms, and OpenAI rely on AMD’s advanced processors to run AI tasks. Cloud providers are increasing their spending plans to build out data-centre capacity for AI workloads.
Meta recently lifted the low end of its annual capital spending range by $2 billion—to between $66 billion and $72 billion. Likewise, Microsoft projected a record $30 billion in capital outlays for the first quarter of its fiscal year to keep pace with surging AI demand.
No China sales yet as licenses are still pending
For the third quarter, AMD anticipates about $8.7 billion in revenue, give or take $300 million. Analysts surveyed by LSEG had an average forecast of $8.30 billion.
That outlook excludes any sales from shipments of its MI308 AI chip to China, since export licenses are still under review by the U.S. government.
In April, Washington imposed curbs requiring a licence to send advanced AI processors to China. The Commerce Department is now assessing AMD’s applications, and the company said it will resume those exports once approval is granted. In mid-July, the administration quietly reversed the prohibition on specially tailored, “China-compliant” chips. As reported by Cryptopolitan, Nvidia filed applications to resume H20 GPU sales, and AMD plans to seek licences for its MI308 accelerators, but approvals are still pending
Over the past ten years, under CEO Lisa Su’s leadership, AMD has transformed into a major technology supplier across computing, capitalizing on Intel’s missteps to turn its own fortunes around. As a result, AMD’s market capitalization now exceeds Intel’s by about $200 billion.
But Nvidia’s growth is far ahead of both companies as its dominance in AI accelerators has made it the world’s most valuable company. AMD remains the second‐largest producer of graphics chips, the foundation for data‐center AI accelerators, and its CPUs go head‐to‐head with Intel in both PC and server markets.
AMD moves more manufacturing to the U.S.
In May, Su described China as a “large opportunity” for semiconductors and AI, even amid tightening export rules and shifting tariff plans.
“There should be a balance between export controls for national security as well as ensuring that we get the widest possible adoption of our technology,” Su told CNBC’s “Squawk on the Street” on Wednesday. “That’s a good thing for U.S. jobs in the U.S. economy.”
She added that U.S. leadership in artificial intelligence and widespread adoption “is the primary objective and a really great position for us to be in.”
Su said there is a “balance to be played between” restricting chip exports and providing access to them.
Meanwhile, CNBC reported Super Micro Computer Inc. shares fell 15% in extended trading on Tuesday after the server maker reported disappointing fiscal fourth-quarter results and issued cautious guidance for the coming quarter.
In the period ended June 30, revenue rose 7.5% year-over-year. The company projects adjusted earnings of $0.40 to $0.52 per share on $6 billion to $7 billion in sales for its fiscal first quarter.
Analysts polled by LSEG had anticipated $0.59 per share on $6.6 billion in revenue.
For fiscal 2026, Super Micro forecasts at least $33 billion in revenue, topping the $29.94 billion consensus. After a surge in demand during 2023 for Nvidia-equipped data-center servers used in artificial intelligence, growth has since moderated.
The company dodged a Nasdaq delisting after delays in its financial filings and the departure of its auditor. As of Tuesday’s close, shares had climbed about 88% this year, while the S&P 500 gained 7%.
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