AMD’s AI datacenter revenue dived due to China GPU sales ban • The Register

AMD’s income from AI merchandise destined for datacenters dipped within the quarter ended June twenty eighth, due to the USA’s ban on GPU exports to China.

The chip design agency’s outcomes had been sturdy total, with income of $7.7 billion representing 32 % year-on-year development and internet revenue leaping 229 % to $872 million. Datacenter gross sales rose 14 % 12 months over 12 months to $3.2 billion, with EPYC processors main the way in which.

Datacenter income would have been higher had been it not for the Trump administration’s ban on promoting the Intuition MI308 accelerator to China, which value AMD $800 million and dragged its gross margins down.

Whereas the Trump administration has signalled it can enable AMD to renew gross sales of the Intuition MI308 to China, the corporate determined to not forecast any income from the half on this quarter. CEO Lisa Su instructed traders the US Division of Commerce is reviewing AMD’s software for a license that can enable it to renew Intuition MI308 exports to the Center Kingdom.

Whereas the China disaster brought on concern at AMD, the corporate was happy with its efficiency.

CEO Lisa Su pointed to file gross sales for EPYC and Ryzen CPUs.

“We noticed sturdy demand throughout our EPYC portfolio to energy cloud and enterprise workloads and more and more for rising AI use circumstances,” she stated. “Specifically, adoption of agentic AI is creating further demand for normal function compute infrastructure as clients rapidly notice that every token generated by a GPU triggers a number of CPU-intensive duties.”

Su additionally stated that quantity manufacturing of AMD’s MI350 accelerators – the elements it says match the efficiency of Nvidia’s Blackwell equipment – started in June and is forward of schedule.

“We anticipate a steep manufacturing ramp within the second half of the 12 months to help large-scale manufacturing deployments with a number of clients,” she stated.

The CEO stated work on AMD’s next-generation MI400 sequence accelerators “is progressing quickly.”

“These are probably the most superior GPUs we’ve ever constructed with as much as 40 petaflops of FP4 AI efficiency and 50 % extra reminiscence, reminiscence bandwidth and scale-out throughput than the competitors,” Su stated, including that AMD’s deliberate Helios rack scale rigs that make use of the half will embody as much as 72 GPUs in every rack, and “is anticipated to ship as much as a 10x generational efficiency enhance for probably the most superior Frontier fashions.”

Su stated AMD believes Helios shall be “the highest-performance AI system on the earth when it launches” and stated growth of the product goes properly forward of a deliberate 2026 launch.

AMD will promote Helios to its “largest clients” – basically hyperscalers – and is working with them to make sure the techniques are appropriate with their datacenters. That contrasts with the MI350 sequence, which customers can deploy in present bit barns.

“Trying forward, we see a transparent path to scaling our AI enterprise to tens of billions of {dollars} in annual income,” Su stated.

Ryzen desktop gross sales

Income from desktop merchandise reached $3.6 billion, up 69 % year-over-year. Shopper income hit $2.5 billion, up 67 % year-over-year.

AMD stated demand for brand spanking new Zen 5 and Ryzen elements drove the income enhance. Avid gamers drove a 73 % income rise to $1.1 billion.

On the desktop, Su stated AMD is assured it may possibly “proceed rising consumer processor income forward of the market over the approaching quarters”, suggesting the corporate thinks it may possibly outpace Intel and maintain Qualcomm quiet.

CFO Jean X Hu predicted Q3 income will attain roughly $8.7 billion, plus or minus $300 million, representing roughly 28 % year-over-year income development. Hu added that if China resumes shopping for at previous ranges, AMD’s future quarterly income may rise by one other $800 million.

The chip designer can use that income, as a result of the cost it took from being unable to promote to China dented income badly and led traders to ship its share value down nearly six % in after-hours buying and selling.

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