AMD delivers third quarter beat and forecast raise

Core Viewpoint - AMD's recent earnings report showed a strong performance, but investors are still looking for tangible results from its AI chip business, particularly in light of challenges in China and the overall AI market [1][2]. Financial Performance - AMD reported a top and bottom line beat for the quarter, with strong guidance provided [1][2]. - Despite the positive earnings, there are concerns regarding the profitability of AI shipments and overall revenue guidance [5]. AI Business Developments - The company has not yet seen significant revenue from its AI chip business, with analysts questioning the impact of major AI deals during the earnings call [2]. - AMD has received some licenses for its Instant Instinct series, which may allow revenue to start flowing from AI chip sales in China, potentially giving AMD a competitive edge over Nvidia [3]. Market Challenges - AMD faces export restrictions that could result in a loss of $1.5 billion in revenue this year [2]. - The Chinese government is enforcing stricter regulations, compelling state-backed data centers to utilize domestic AI chips and remove foreign hardware, which impacts both AMD and Nvidia [4].