Advanced Micro Devices (AMD) reported Q2 revenue of $7.7 billion, up 3% sequentially and 32% YoY, meeting expectations. Q3 revenue forecast of $8.7 billion anticipates 13% sequential growth, 28% YoY. Despite ban on MI308 sales to China, data center revenue increased by 14% YoY. CEO Lisa Su optimistic about future AI revenue.

Morningstar raises AMD’s fair value estimate to $155 per share from $140 due to increased AI GPU estimates. Shares dropped 4% after hours, still viewed as modestly overvalued. September quarter revenue to surge by $1 billion from AI GPUs. Expect $1.8 billion and $2.6 billion in AI GPU revenue in Q3 and Q4.

Read more at Morningstar: Strong CPU Share Gains and AI Prospects