Advanced Micro Devices Inc., the second-largest maker of artificial intelligence processors, warned that its return to the crucial China market remains a work in progress, overshadowing a generally upbeat forecast for its AI business.
As part of its quarterly earnings report on Tuesday, AMD declined to predict Chinese sales of its Instinct MI308, an AI processor that it designed for the Asian country.
The Trump administration had barred shipments of such chips to China in April, though it reversed course last month, raising hopes that AMD and rival Nvidia Corp. could soon resume sales. China is the largest market for semiconductors, and the restrictions have threatened to erase billions of dollars in total revenue from both companies.
“We appreciate the focus the Trump administration is placing on ensuring that US technology remains central to global AI infrastructure and we expect to resume MI308 shipments as licenses are approved, subject to end customer demand and supply chain readiness,” Chief Executive Officer Lisa Su said on a conference call with analysts. “As our licenses are still under review, we are not including any MI308 revenue in our third-quarter guidance.”
Su was optimistic about the overall market for AI computing. “Looking ahead, we see a clear path to scaling our AI business to tens of billions of dollars in annual revenue,” she said during the call. The company also is ramping up its new MI350 lineup, she said.
AMD shares initially fell more than 5% in extended trading on the China concern, before paring the losses during the conference call. They had gained 44% in 2025 through the close, making AMD the best-performing stock in the semiconductor industry.
Third-quarter sales will be about $8.7 billion, the company said, topping the average analyst estimate of $8.37 billion.
AMD’s second-quarter sales rose 32% to $7.7 billion, compared with a $7.43 billion average estimate. Profit was 48 cents a share, minus certain items. Analysts projected 49 cents.
Data center sales gained 14% to $3.2 billion in the period. On average, analysts had predicted $3.25 billion. Personal computer-related sales climbed 67% to $2.5 billion. The average prediction was $2.56 billion.
Three months ago, AMD said it was taking $800 million in writedowns related to the export restrictions and warned that the curbs would cost it $1.5 billion in revenue this year. Wall Street has been waiting for a revised outlook in light of the shifting policy.
In the decade since Su took the top job at AMD, the company has become a key provider of technology across the computing industry. The ability to deliver competitive products — at a time when longtime nemesis Intel Corp. has stumbled — has brought a reversal of fortunes.
AMD’s market capitalization is now roughly $200 billion higher than Intel’s. Still, neither company has matched the runaway success of Nvidia, whose dominance of AI accelerators has made it the world’s most valuable business.
AMD is the second-biggest provider of graphics chips, which form the basis for the AI accelerators that run in data centers. Its microprocessors, meanwhile, go head to head with Intel products in the markets for PCs and servers.
This article was generated from an automated news agency feed without modifications to text.
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