Advanced Micro Devices reported second-quarter revenue of $7.7 billion, up 32 percent from a year earlier, and adjusted earnings of 48 cents a share. The results nevertheless disappointed investors after data-center sales—closely watched as the company’s main avenue into artificial-intelligence hardware—rose only 14 percent to $3.2 billion and fell 12 percent sequentially. AMD shares slid about 4 percent in late trading and were recently down more than 5 percent pre-market. Chief Executive Officer Lisa Su said AI chip revenue declined year over year because U.S. export restrictions stopped shipments of the current-generation MI308 accelerator to China and because customers are transitioning to the next-generation MI350 series. The company has forecast a $1.5 billion hit to 2025 revenue from the curbs and recorded roughly $800 million in inventory-related charges tied to unsold China-bound parts. AMD expects third-quarter revenue of roughly $8.7 billion, plus or minus $300 million, ahead of Wall Street’s $8.3 billion consensus, and forecasts an adjusted gross margin of about 54 percent. Volume production of the MI350 began in June, and the company projects a steep ramp in the second half of the year. Shipments of MI308 processors to China remain on hold pending U.S. Commerce Department license approvals. While the muted data-center performance contrasts with Nvidia’s far faster growth, analysts such as Wells Fargo maintained bullish ratings, citing visibility into large-scale AI deployments beginning in the fourth quarter and into 2026. AMD says it still sees a path to scaling its AI business to "tens of billions" of dollars in annual sales once export hurdles ease and new products reach full volume.