AMD CEO Lisa Su: reports limited "pull-forward" orders

AMD CEO Lisa Su: reports limited "pull-forward" orders

Advanced Micro Devices Inc. (AMD) CEO Lisa Su has disclosed that the company has experienced limited "pull-forward" orders, a term used to describe the practice of accelerating the delivery of products to customers. This revelation comes as AMD continues to navigate the complexities of U.S. export regulations on advanced AI hardware to China.

During AMD’s second-quarter earnings call, Su acknowledged that while the company has been making progress with U.S. regulators on AI chip export licenses to China, the progress is not yet sufficient to secure licenses for its MI308 AI chips. Su stated that the company is working closely with the Trump administration to secure these licenses, noting that the current situation is a "better position than we were 90 days ago" [1].

Su also mentioned that while AMD has not yet received export licenses for the MI308 chips, several applications are under review by the U.S. Department of Commerce. These licenses are required due to ongoing U.S. export restrictions on advanced AI hardware to China [1].

Despite the geopolitical challenges, China remains an important market for AMD. Su expressed support for the global use of U.S. technology and AMD's commitment to contributing to that effort. However, the U.S. government's export controls on AI hardware have negatively impacted the company's sales and inventory [1].

The company's inventory related to the MI308 is largely in the production phase, and it may take a couple of quarters to run through this inventory. The timeline for revenue contribution from the MI308 depends on when export approvals are granted [1].

AMD reported second-quarter revenue of $7.69 billion, surpassing the $7.41 billion forecast by analysts. However, its adjusted earnings came in at 48 cents per share, slightly below the expected 49 cents. The company projects third-quarter revenue to be around $8.7 billion, give or take $300 million, compared to analysts' estimates of roughly $8.15 billion [1].

Historically, AMD has demonstrated a strong correlation between earnings beats and short-term stock performance. From 2022 to the present, AMD has beaten earnings expectations 9 times, with a consistent 55.56% win rate in the 3-day, 10-day, and 30-day periods following a beat. The maximum return during this period reached 7.90% on day 17, underscoring the potential for positive momentum after strong earnings reports. This pattern suggests that while regulatory uncertainties persist, AMD’s operational execution—evidenced by its recent revenue outperformance—has historically translated into favorable market reactions.



AMD shares have risen approximately 44.50% year-to-date, but as of the latest check on Wednesday, the stock was down 4.37% in pre-market trading, trading at $166.70 [1].

References:
[1] https://www.benzinga.com/markets/tech/25/08/46885469/amd-ceo-lisa-su-says-china-strategy-rebounding-as-mi308-ai-chips-await-us-license-better-position-than-we-were-ninety-days-ago
[2] https://www.aol.com/why-amd-stock-sinking-today-193950223.html
[3] https://finance.yahoo.com/news/amd-stock-declines-earnings-drop-113520802.html