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AMD stock rises 3% after earnings beat, CEO predicts 'multiple winners' in AI race

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AMD CEO Lisa Su said there will be “multiple winners” in the AI arms race, and the chip maker is planning on being among them.

Advanced Micro Devices Inc. shares surged in the extended session Tuesday after the chip maker’s results topped Wall Street estimates, and the company’s chief executive said there will be “multiple winners” in the AI arms race.

AMD Chief Executive Lisa Su told analysts on the conference call that the better-than-expected results in PC sales, following pandemic highs and then inventory write-downs, stems from “the strength of our product portfolio.” Second-quarter revenue fell to $5.36 billion from $6.55 billion a year ago, and gross margins fell to 50% from 54% a year ago. Last quarter, AMD forecast a strong showing from its AI and data-center products for the second half of the year but admitted it will take a rebound in the PC market to improve gross margins.

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