On August 6, Bloomberg reported that AMD warned on Tuesday that it will take some time to resume chip sales in China. This uncertainty has cast a shadow on its overall optimistic AI business prospects. During an earnings call on Tuesday, AMD executives declined to predict sales in China of its Instinct MI308, an AI processor designed specifically for the Chinese market.
Su Zifeng
AMD CEO Lisa Su said: "We appreciate the Trump Administration's commitment to ensuring that U.S. technology remains central to the global AI infrastructure. We expect to resume MI308 shipments after licenses are obtained, depending on end customer demand and supply chain readiness. Because our licenses are still under review, we did not include any MI308 revenue in our third quarter performance guidance."
Su Zifeng is optimistic about the overall AI computing market. "Looking ahead, we can see a clear path to scaling our AI business to tens of billions of dollars in annual revenue," she said during the conference call. She also mentioned that AMD is ramping up production of its next-generation MI350 series.
Due to the uncertainty about chips for the Chinese market, AMD's stock price once fell by more than 5% in after-hours trading, but recovered some of the losses during the conference call. As of the close of the day, AMD's stock price had risen by 44% this year, making it the best-performing stock in the semiconductor industry.
AMD's second-quarter revenue increased 32% year-on-year to $7.7 billion, better than analysts' average estimate of $7.43 billion. AMD expects third-quarter revenue of about $8.7 billion, better than analysts' average estimate of $8.37 billion.