AMD reports weaker-than-expected earnings even as revenue tops estimates

AMD reported slightly missed earnings with 48 cents per share versus 49 expected, but revenue beat estimates at $7.69 billion. The stock dropped 5% after hours. The company expects $8.7 billion in sales next quarter. AMD is the second‑largest AI GPU maker behind Nvidia, gaining clients like OpenAI. New AI chips, Instinct MI400, will launch next year, but U.S. export controls hurt sales to China, costing $800 million this quarter. Data center revenue grew 14% to $3.2 billion, boosted by CPU demand for AI servers, CNBC has reported. Client and gaming revenue rose 69% to $3.6 billion, driven by strong Ryzen CPU and gaming GPU sales.