Chipmaker Advanced Micro Devices’ (AMD) stock was down ~5% in extended trading yesterday despite Q2 revenue hitting $7.69 billion, well above the $7.42 billion forecast.
Investors were spooked by weaker-than-expected performance in AMD’s AI chip division. It faces US export restrictions that eliminated MI308 chip sales to China, said CEO Lisa Su. She pointed out, “AI business revenue declined year over year.”
The company makes the graphics processing units (GPUs) needed for processing artificial intelligence models. It is the second largest GPU maker behind Nvidia.
More tech companies are relying on AMD as Nvidia chips become costly. ChatGPT maker OpenAI has already committed to using AMD’s new GPUs.
Meanwhile, Super Micro Computer shares dropped 15% in after-hours trading on Tuesday. The data center server maker missed revenue expectations and issued weak quarterly guidance.
Its revenue rose 7.5% to $5.76 billion, but it was lower than the $5.89 billion expected.