The better-than-expected results come despite AMD announcing an 18% decline in its revenue due to an ongoing slump in personal computer sales, where much of its technology is used.
AMD reported earnings per share of $0.58 U.S. versus $0.57 U.S. that was expected among analysts who follow the company, according to Refinitiv data.
Revenue in the April through June period totaled $5.36 billion U.S. compared to $5.31 billion U.S. that was anticipated.
In terms of forward guidance, AMD said it expects $5.70 billion U.S. in Q3 sales, which is lower than the $5.81 billion U.S. that analysts had penciled in.
AMD said its processor business continues to slow because of a slump in the global PC market. AMD’s total revenue declined for a second straight quarter as a result.
Still, AMD is one of only a few companies making high-end microchips and semiconductors for use in artificial intelligence (A.I.) applications.
The company said on its earnings call with analysts and media that it is increasing it’s A.I.-related research and development spending and has developed a strategy that includes A.I.-specific chips and software.
During the quarter, AMD introduced a new chip that’s intended to build and run A.I. models that are at the heart of applications such as ChatGPT.
AMD said its MI300X chip is currently being provided to customers for testing and that full production would ramp-up in this year’s fourth quarter.
The stock of AMD has increased 18% over the last 12 months to $117.60 U.S. per share.