AMD's second quarter financial results were strong, which led to a rise in stock prices

According to the financial results report, AMD's total sales for the current quarter were 5.8 billion 35 million dollars, a 9% increase from the same period last year, a 7% increase from the previous quarter, and a net profit of 0.2 billion 65 million dollars compared to the advance forecast of 5.7 billion 20 million dollars, an increase of 881% from the same period last year and an increase of 115% from the previous quarter.

In particular, the growth rate of the data center business was astonishing, and it doubled in 1 year. The company's excellent performance with AI chips has greatly boosted investor confidence.

Analysts believe that AMD's strong performance is mainly due to the strong competitiveness of AMD's AI chips. Chief Executive Lisa Hsu (CEO) said there is a possibility that supply shortages will continue in the short term due to current AI chip research and development slowing down.

According to the financial results report, AMD's net revenue for the second quarter of its data center business was 2.8 billion dollars, up 115% from the same period last year. This is mainly due to strong demand for the AI accelerator “MI300.”

The MI300, which is AMD's main product that competes with NVIDIA's H100, achieved sales of 1 billion dollars or more in one quarter, and achieved results far exceeding market expectations.

Lisa Hsu said in a telephone conference with analysts that the company's AI chip sales were “more than expected.” She also revealed that AMD plans to maintain its competitiveness in the market with the MI325X scheduled for the fourth quarter of this year, the MI350 in 2025, and the MI400 scheduled for 2026. The Mi350 should be “extremely competitive” with Nvidia's Blackwell.

Some analysts believe NVIDIA is still leading AMD. Despite doubling this year, the scale of AMD's data center business is a fraction of NVIDIA, and while it is 2.8 billion dollars per quarter, NVIDIA is 22.6 billion dollars per quarter.

Despite AMD's impressive performance, supply chain constraints remain an issue.