Lisa Su, CEO of Advanced Micro Devices, and Sam Altman, CEO of OpenAI, testified at a Senate hearing on strengthening U.S. capabilities in computing and innovation. AMD reported Q2 earnings that missed estimates, causing a 3% stock drop in extended trading. The company’s net income rose to $872 million from $265 million a year ago.

For the current quarter, AMD expects sales of $8.7 billion, surpassing analyst expectations of $8.3 billion. The company is the second-largest maker of GPUs for AI behind Nvidia. AMD announced new AI chips called the Instinct MI400 and is facing export controls on some of its AI chips due to military concerns.

AMD’s revenue from the AI business declined due to export restrictions on the MI308 chip to China. The company’s newest AI chip, Instinct MI350, is competitive with Nvidia’s GB200 chips. AMD’s adjusted gross margin was 43%, which would have been 54% without export control costs. The company’s data center segment revenue was $3.2 billion, up 14% annually.

In the Client and Gaming segment, including CPUs for laptops and desktops, revenue rose 69% annually to $3.6 billion. Client revenue alone increased to $2.5 billion, driven by strong demand for desktop CPUs like AMD Ryzen Zen 5. Gaming revenue surged 73% to $1.1 billion, thanks to custom chips for game consoles and gaming GPUs.

Read more at CNBC: AMD earnings report 2Q 2025