(Reuters) -AMD forecast second-quarter revenue above Wall Street estimates on Tuesday, betting on robust demand for its artificial-intelligence chips even as trade tensions cloud the global economic outlook.
Shares of the Santa Clara, California-based company rose 6% in extended trading.
The optimistic forecast from AMD could help reinforce investor confidence in its ability to compete against Nvidia, after concerns around a trailing position in the lucrative AI market had sent its shares down more than 17% this year.
Demand remains robust for its advanced processors that power complex AI systems for Microsoft, Meta Platforms and other customers, with cloud giants reinforcing hefty spending plans for building AI infrastructure.
The company expects revenue of about $7.4 billion for the second quarter, plus or minus $300 million, compared with analysts’ average estimate of $7.25 billion, according to data compiled by LSEG.
AMD said last month it expects charges of up to $800 million due to the latest curbs by the Trump administration on exports of its advanced processors to Beijing.
Adjusted gross margin for the second quarter is estimated to be 43% inclusive of the charge and approximately 54% excluding it.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona and Matthew Lewis)
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