AMD Q2 Earnings: Revenue Beat, EPS Miss, 'Robust' AI Product Demand Positions Company For 'Significant Growth' In Back Half Of Year

Advanced Micro Devices Inc AMD reported financial results for the second quarter after the market close on Tuesday. Here’s a look at the key details from the chipmaker’s report.

Q2 Earnings: AMD reported second-quarter revenue of $7.69 billion, beating analyst estimates of $7.41 billion, according to Benzinga Pro. The company reported second-quarter adjusted earnings of 48 cents per share, missing estimates of 49 cents per share.

Total revenue was up 32% year-over-year. Here's a breakdown of revenue by segment.

• Data Center: $3.2 billion, up 14% year-over-year
• Client and Gaming: $3.6 billion, up 69% year-over-year
• Embedded: $824 million, down 4% year-over-year

Non-GAAP gross margin came in at 43% in the quarter. AMD said the U.S. Government’s export controls on its AMD Instinct MI308 GPUs led to approximately $800 million in inventory and related charges. Excluding these charges, gross margin would have been 54%.

The company reported operating income of $897 million and ended the period with approximately $4.44 billion in cash and cash equivalents.

“We delivered strong revenue growth in the second quarter, led by record server and PC processor sales,” said Lisa Su, chair and CEO of AMD.

“We are seeing robust demand across our computing and AI product portfolio and are well positioned to deliver significant growth in the second half of the year, driven by the ramp of our AMD Instinct MI350 series accelerators and ongoing EPYC and Ryzen processor share gains.”

Outlook: AMD sees third-quarter revenue of approximately $8.7 billion, plus or minus $300 million. Analysts are currently forecasting revenue of approximately $8.15 billion for the third quarter, per Benzinga Pro estimates.

AMD’s management team will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.

AMD Price Action: AMD shares were up approximately 45% year-to-date heading into the print. Shares were down 4.90% in after-hours, trading at $165.77 at the time of publication on Tuesday, according to Benzinga Pro.

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Photo: courtesy of AMD.