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AMD forecasts upbeat revenue on strong AI chip demand, but shares fall on lofty expectations

AMD said third-quarter revenue will reach about $13 billion, but shares slid more than 7% as investors wanted a stronger outlook.

  • On Tuesday, Advanced Micro Devices, Inc. reported second-quarter revenue of $11.54 billion, beating estimates, yet shares fell 8.8% in extended trading as investors sought stronger guidance.
  • Data-Center revenue surged 107% to $6.72 billion, accounting for 58% of total sales, driven by massive demand for AI technologies powering infrastructure expansions.
  • Adjusted profit reached $1.66 per share, surpassing the $1.62 consensus, while the client and gaming segment delivered $3.84 billion in sales.
  • CEO Lisa Su noted server CPU supply remains tight from unforecasted demand, though software open-source contributions reached an "inflection point" to accelerate development.
  • Su expects the server supply situation to improve by 2027, while analysts anticipate capital expenditures by data-center owners could exceed $1 trillion that year.
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Channel News Asia broke the news in Singapore, Singapore on Tuesday, August 4, 2026.
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