AMD reports decrease in revenue, reveals new AI chip in the making

AMD recently released their Q2 financial results, which showed an 18% decrease in revenue, but still topped estimates for sales and profits. 

Here’s a quick breakdown: 

- The company made 58 cents per share after adjustments, beating the predicted 57 cents per share

- Reported revenue of $5.36 billion, outperforming the anticipated $5.31 billion 

- Net income of $27 million this quarter, a dip from last year's $447 million. 

Adding to that, the processor business has hit a rough patch recently due to a downturn in the global PC market. The result was a decrease in total revenue from $6.55 billion a year ago, marking the second quarter in a row of falling revenue.

One-time investment losses and acquisition-related costs were also left out of the earnings.

However, AMD remains a key player in producing high-end graphics processing units (GPUs), vital for artificial intelligence (AI). The tech world is keeping an eye on AMD's server chips, which may dent Intel's market share.

Looking to the future, AMD anticipates sales to reach $5.7 billion in the third quarter. This is slightly below the expected revenue of $5.81 billion. The company also projected growth in its data center and embedded divisions.

There’s also promising news as AMD has unveiled a new chip designed for AI applications, including projects like ChatGPT. The MI300X chip is currently being tested by customers, with full-scale production set to increase later this year.