AMD earnings call: Execution on track, AI engagements surging
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Following AMD's (NASDAQ:AMD) well-received quarterly results and guidance, the semiconductor giant said execution during the quarter was strong and the company is "significantly" expanding the number of engagements of artificial intelligence. 
Speaking on the earnings call, AMD (AMD) Chair and CEO Dr. Lisa Su said that AI customer engagements grew seven times sequentially, aided by the MI 250 and MI300 hardware and software.
She also explained that AMD's (AMD) AI strategy is focused on three areas - having a broad portfolio of multi-generation roadmap for GPUs and CPUs; extending the software platform to be deployed easily; and continue collaboration - all of which is on track. 
Customer interest in the MI 250 and MI 300 accelerators are "very high," with continued engagements with top tier cloud providers, with production on track to ramp for the MI 300 in the fourth-quarter, Dr. Su added.
And though Client-related revenue fell 54% year-over-year to $998M, Dr. Su said that AI is likely to be a "significant" demand driver for PCs over time, as generative AI moves to PCs, given that AI is still in its "early days."
"Longer-term, it is clear that AI represents a multi-billion dollar opportunity for AMD," Dr. Su explained. By 2027, the company expects the AI accelerator market to hit $150B.
Looking to the third-quarter, AMD (AMD) said it expects revenue to be between $5.4B and $6B, with the mid-point below the consensus estimate of $5.85B. AMD also expects gross margins around 51%, 500 basis points above the second-quarter.
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