AMD reported a 50% increase in revenue to $11.54 billion for the second quarter, surpassing analyst expectations of $11.28 billion. This growth was largely fueled by a 107% rise in data center sales, amounting to $6.7 billion, attributed to strong sales of CPUs and GPUs.
However, despite these positive figures, the company's earnings did not meet the more optimistic forecasts, leading to a decline in stock price. Deutsche Bank analysts noted that while AMD's performance was slightly above consensus, it fell short of higher expectations, contributing to investor jitters.
CEO Lisa Su emphasized the significant demand for compute driven by AI, positioning AMD well for future growth. The company previously raised its forecast for the semiconductor industry's value to $2 trillion by 2028, with $1.4 trillion expected from AI accelerators, a substantial increase from an earlier estimate of $500 billion.
Despite a year-to-date stock increase of 132%, investor sentiment remains cautious, particularly towards AI-related stocks