Core Viewpoint - AMD reported a record revenue of nearly $7.685 billion in Q2, maintaining over 30% year-on-year growth, but profit growth turned negative due to U.S. export restrictions on MI308, leading to a 30% decline in EPS and a 10 percentage point drop in gross margin to 43% [1][12][13] Financial Data Summary - Revenue: Q2 revenue was $7.685 billion, up 32% year-on-year, slightly below the Q1 growth of 36% [6][12] - EPS: Non-GAAP diluted EPS for Q2 was $0.48, down 30% year-on-year, compared to a 55% increase in Q1 [6][12] - Profit: Non-GAAP gross margin was 43%, down from 54% in Q1 and 53% a year ago; operating profit decreased by 29% year-on-year [6][12][13] Segment Performance - Data Center: Q2 revenue was $3.2 billion, growing 14% year-on-year, a significant slowdown from Q1's 57% growth [6][14] - Client Segment: Q2 revenue reached $2.5 billion, up 67% year-on-year, marking a third consecutive quarter of record high revenue [7][14] - Gaming: Q2 revenue was $1.1 billion, reversing a 30% decline in Q1 to a 73% increase [8][15] Guidance and Outlook - Q3 Revenue Guidance: Expected revenue is approximately $8.7 billion, with a growth rate slowing to below 30% [10][16] - Gross Margin Guidance: Q3 gross margin is projected to recover to 54% [11][17] - Export Restrictions: Current guidance does not account for any revenue from MI308 exports to China, pending U.S. government approval [18][19] Market Context - AMD's stock price has increased over 40% since the beginning of the year, outperforming competitors like NVIDIA, which saw a 30% increase [3] - Concerns about high valuation pressures on AMD's stock following significant price increases this year [3]

Partnership & Strategy - AMD and Microsoft are deepening their partnership to advance gaming across all screens [1] - The collaboration aims to build a vibrant, open ecosystem for next-generation graphics and immersive gameplay [3] - AMD will design a full roadmap of gaming-optimized chips, combining Ryzen and Radeon for consoles, handhelds, PCs, and the cloud [2] Technology & Innovation - AMD and Microsoft are building the future of immersive gaming powered by AI, including new foundational models to accelerate rendering [4] - The focus is on delivering backwards compatibility, allowing gamers to access their favorite titles across platforms [3] Product & Market Focus - AMD is expanding beyond custom chips for Xbox consoles to include handhelds like the ROG Xbox Ally [2] - The collaboration spans from consoles (Xbox Series X and S) to handhelds and the cloud [2][4]