Advanced Micro Devices (AMD) reported disappointing data center revenue, including AI chips. Shares fell 4% in extended trading, despite a 40% increase this year. Meta and Microsoft have increased annual capital spending due to AI demand, but AMD has not benefited like Nvidia. AMD’s second-quarter data center revenue was $3.2 billion, below expectations. CEO Lisa Su cited U.S. export restrictions and MI350 series transition for AI chip revenue decline. Third-quarter revenue is estimated at $8.7 billion, excluding AI chip MI308 shipments to China pending U.S. license approval. AMD forecasted a $1.5 billion revenue impact from U.S. curbs on AI processor exports to China. Adjusted second-quarter profit was 48 cents per share on $7.69 billion in revenue.

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