Advanced Micro Devices reported second-quarter earnings on Tuesday after the close of markets that essentially matched estimates for profit and revenue but guided lower for the current quarter. $AMD stock fell over 6% in extended trading. AMD is seen as having a significant market opportunity as its primary rival for PC and server processors, Intel continues to disappoint. All four of AMD’s major segments grew during the quarter, in which overall revenue soared 70% year over year. Graphics processors for gaming PCs declined during the quarter.
Advanced Micro Devices, Inc. NASDAQ: AMD Reported Earnings After Close Tuesday
$1.05 Met $1.05 EPS Forecast and $6.55 billion Beat $6.53 Billion Forecast in Revenue
All four of AMD’s major segments grew during the quarter, in which overall revenue soared 70% year over year.
CEO Su said on the earnings call with analysts that AMD believes it is taking market share in the server and PC markets. “We’re pleased that we’re gaining share,” she said.
AMD Q2 22 Earnings:
- Revenue: $6.55B (exp $6.53B)
- Adj EPS: $1.05 (exp $1.05)
- Data center sales surged 83% year over year to $1.5 billion. The segment includes chips for cloud computing and large enterprise customers.
- Strong sales for server processors drove the growth, the company said, adding it doesn’t anticipate a slowdown in demand for these chips.
- Client segment revenue, which is comprised of PC and laptop chip sales, rose 25% to $2.2 billion during the quarter despite signs that computer sales have been slowing at the end of a two-year pandemic-fueled boom.
- AMD said the growth was attributable to mobile processor sales, likely for laptops.
- Gaming segment sales rose 32% year over year to $1.7 billion on sales growth in “semi-custom” chips for consoles. However, graphics processors for gaming PCs declined during the quarter.
- AMD’s embedded segment, which includes chips for networking or cars, reported $1.3 billion in sales, was boosted by AMD’s acquisition of Xilinx, which was completed in the first quarter
- AMD said it repurchased $920 million of its stock during the second quarter.
- Sees Q3 Revenue $6.5B To $6.9B (exp $6.81B).
AMD has partnerships with major game developers including Ubisoft, Capcom and Rebellion to optimize their next generation of games on Radeon graphics in a most competitive marketplace.
The chipmaker said it expected $6.7 billion in revenue during the current quarter, plus or minus $200 million. Analysts had expected $6.83 billion.
AMD CEO Lisa Su saw declines in the current quarter for the PC business.
“We have taken a more conservative outlook on the PC business, so a quarter ago we would have thought that the PC business would be down let’s call it high single digits,” Su said. “Our current view of the PC business is that it will be down mid-teens.”
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