AMD reported slightly missed earnings with 48 cents per share vs. 49 expected, but revenue beat estimates at $7.69 billion.

The stock dropped 5% after hours. The company expects $8.7 billion in sales next quarter.

AMD is the second-largest AI GPU maker behind Nvidia, gaining clients like OpenAI.

New AI chips, Instinct MI400, launch next year, but U.S. export controls hurt sales to China, costing $800 million this quarter.

Data center revenue grew 14% to $3.2 billion, boosted by CPU demand for AI servers, CNBC has reported.

Client and Gaming revenue rose 69% to $3.6 billion, driven by strong Ryzen CPU and gaming GPU sales.

Written by B.C. Begley