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AMD forecasts upbeat revenue on strong AI chip demand, but shares fall on lofty expectations
['Anhata Rooprai', 'Max A. Cherney', 'Tue', 'August At Pm Gmt', 'Min Read']
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By Anhata Rooprai and Max A. CherneyAug 4 (Reuters) - AMD forecast quarterly revenue above Wall Street estimates on Tuesday, banking on strong demand for its chips from massive data-center capacity expansions to power AI technologies.
AMD expects third-quarter revenue of about $13 billion, plus or minus $300 million, while analysts estimate $12.52 billion, according to data compiled by LSEG.
The forecast suggests that AMD's investments to challenge Nvidia's dominance in the market for AI chips are beginning to pay off, with sales of its data-center processors accelerating in the second quarter.
AMD's quarterly data-center revenue more than doubled to $6.72 billion, beating expectations of $6.48 billion.
Second-quarter revenue jumped 50% to $11.54 billion, beating the estimate of $11.28 billion.