AMD's Q2 revenue hits a record high, and guidance also exceeds expectations, but the export outlook for MI308 to China is unclear | Earnings Report Insights

Faced with the pressure of the United States tightening chip export controls, artificial intelligence (AI) chip giant AMD still achieved record revenue last quarter, with guidance for this quarter exceeding Wall Street expectations. Nevertheless, the outlook for AMD's recovery of exports to China under U.S. export restrictions remains uncertain. After the earnings report was released, AMD's stock price, which fell over 1% on Tuesday, extended its decline, dropping more than 5% in after-hours trading, highlighting the valuation pressure AMD faces after a significant rise in its stock price this year. During the earnings call, AMD executives revealed that they had started mass production of the new MI350 chip more than a month ahead of schedule, which initially narrowed AMD's after-hours stock decline to less than 2%, but it later widened again, reflecting that concerns over sales prospects in China outweighed the overall optimistic guidance. Before the earnings report, AMD's stock price had risen over 40% since the beginning of this year, making it the best-performing chip stock of the year, while its rival NVIDIA rose over 30% during the same period. Some commentators believe that the current market valuation of AMD may be slightly high; while AMD is indeed a beneficiary of the AI race, the question is whether its performance is sufficient to justify this year's stock price increase, which should even exceed that of NVIDIA. On August 5, Tuesday, Eastern Time, AMD announced its second-quarter results for 2025 and provided guidance for the third quarter. 1) Key financial data: Revenue: Second-quarter operating income was $7.685 billion, a year-on-year increase of 32%, compared to analysts' expectations of $7.43 billion, with a year-on-year increase of 36% in the first quarter