August 1, 2024 /SemiMedia/ -- According to AMD's latest financial forecast, its third-quarter revenue will exceed market expectations, and demand for its artificial intelligence (AI) chips is expected to continue to rise.

AMD CEO Lisa Su said in a conference call that the company raised its 2024 AI chip revenue forecast to $4.5 billion from $4 billion previously. She said supply of AI chips will remain tight until 2025.

AMD, one of the largest suppliers of PC chips, is also benefiting from a recovery in the personal computer market after its worst slump in years. New artificial intelligence capabilities in computers are reviving consumer demand.

AMD forecast third-quarter revenue of about $6.7 billion, beating the average analyst estimate of $6.61 billion according to LSEG data.

According to AMD's financial report, its total revenue in the second quarter increased by 9% to $5.8 billion, exceeding the estimate of $5.72 billion. Among them, data center revenue soared 115% to $2.8 billion, slightly higher than the estimate of $2.79 billion; PC chip revenue was $1.5 billion, exceeding the market estimate of $1.43 billion.