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Revenue will be roughly $6.7 billion in the third quarter, Advanced Micro Devices said in a statement on July 30. Analysts estimated $6.62 billion on average. Second-quarter results also topped projections, and the company raised its forecast for so-called AI accelerators — chips used to develop artificial intelligence models.

The outlook suggests that AMD is making headway in its pursuit of Nvidia, which dominates the accelerator market. Nvidia has capitalized on booming demand to send its shares and stock price soaring over the past year, becoming the world’s most valuable chipmaker in the process. Now AMD is looking to make inroads with its own lineup, called MI300.

Chief Executive Officer Lisa Su said 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.

MI300 revenue topped $1 billion in the second quarter, and the company committed to rolling out new AI processors once a year — a key milestone.

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 is Nvidia’s nearest rival in the accelerator market, but still trailing by a wide margin. The hope is to gain more of the money that data-center operators such as Microsoft Corp. and Meta Platforms Inc. are pouring into the creation of AI tools.

Though demand for accelerators has been strong, the appetite for some other AMD products has slowed. Embedded chips and semiconductors for gaming consoles have struggled recently.

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.

Editor：Vicky

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