AMD took approximately $800 million in inventory and related charges due to U.S. export restrictions on its Instinct MI308 GPU designed for the China market. These charges pushed reported gross margins down to 43%, though margins would have been roughly 54% excluding the one-time impact. License applications for MI308 shipments remain under government review, creating short-term uncertainty on China sales and pressuring near-term profitability. For the third quarter, AMD guided revenue of $8.7 billion plus or minus $300 million, representing about 28% year-over-year growth at the midpoint, and forecast a non-GAAP gross margin of 54%. Management highlighted the ramp of Instinct MI350 series accelerators, which have already secured placements at multiple hyperscale customers, as the key driver for second-half momentum. Full-year AI accelerator sales are expected to exceed $4 billion, underscoring AMD’s positioning to capitalize on accelerating demand for open, scalable GPU compute solutions. Advanced Micro Devices posted second-quarter revenue of $7.69 billion, up 32% year-over-year, driven by record client and gaming segment performance. Client processor sales jumped 67% on the strength of Zen 5 Ryzen desktop CPUs, while gaming revenue surged 73% thanks to semi-custom designs and Radeon GPU demand. Data center revenue grew 14% despite external headwinds, reflecting ongoing share gains for EPYC server processors. The company generated $2.01 billion in operating cash flow—over three times the prior-year level—and ended the quarter with $5.9 billion in cash and equivalents.
AMD took approximately $800 million in inventory and related charges due to U.S. export restrictions on its Instinct MI308 GPU designed for the China market. These charges pushed reported gross margins down to 43%, though margins would have been roughly 54% excluding the one-time impact. License applications for MI308 shipments remain under government review, creating short-term uncertainty on China sales and pressuring near-term profitability. For the third quarter, AMD guided revenue of $8.7 billion plus or minus $300 million, representing about 28% year-over-year growth at the midpoint, and forecast a non-GAAP gross margin of 54%. Management highlighted the ramp of Instinct MI350 series accelerators, which have already secured placements at multiple hyperscale customers, as the key driver for second-half momentum. Full-year AI accelerator sales are expected to exceed $4 billion, underscoring AMD’s positioning to capitalize on accelerating demand for open, scalable GPU compute solutions. Advanced Micro Devices posted second-quarter revenue of $7.69 billion, up 32% year-over-year, driven by record client and gaming segment performance. Client processor sales jumped 67% on the strength of Zen 5 Ryzen desktop CPUs, while gaming revenue surged 73% thanks to semi-custom designs and Radeon GPU demand. Data center revenue grew 14% despite external headwinds, reflecting ongoing share gains for EPYC server processors. The company generated $2.01 billion in operating cash flow—over three times the prior-year level—and ended the quarter with $5.9 billion in cash and equivalents.