AMD surges after demand for AI chips bolsters sales forecast

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AMD surges after demand for AI chips bolsters sales forecast
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Advanced Micro Devices Inc. shares rallied after the chipmaker gave an upbeat revenue forecast, underscoring that its new artificial intelligence processors are bolstering growth.

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Chief Executive Officer Lisa Su said Tuesday that AMD expects to generate more than $4.5 billion in sales from its MI300 products this year. That’s up from an earlier target of $4 billion, though analysts’ estimates have ranged closer to $5 billion. AMD’s second-quarter revenue rose 8.9% to $5.84 billion, beating an estimate of $5.72 billion. Earnings increased to 69 cents a share, compared with a projection of 68 cents.

AMD shares rose about 6.5% in extended trading following the announcement. They had earlier closed at $138.44 in New York, leaving them down 6.1% for the year. Like Intel, AMD still gets most of its revenue from personal computer and server microprocessors. Santa Clara, California-based AMD also competes with Nvidia in the market for graphics processors that improve the images in video games.

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