AMD knocks on earnings and revenue, but third quarter forecast comes to light


Lisa Su, president and chief executive officer of Advanced Micro Devices Inc. (AMD), speaks at a launch event in San Francisco, California, US, on Wednesday, August 7, 2019.

David Paul Morris | Bloomberg | Getty Images

AMD reported results for the quarter ended June that beat estimates for earnings and revenue, but the chipmaker provided a forecast for the current quarter that fell short of Wall Street’s expectations.

AMD shares fell 5% during extended trading.

This is how the company did it:

  • EPS: $1.05, adjusted, versus $1.03 expected, according to Refinitiv
  • Revenue: $6.55 billion, versus $6.53 billion expected, according to Refinitiv

The chipmaker expects revenue of $6.7 billion in the current quarter, plus or minus $200 million. Analysts expected $6.83 billion.

AMD currently has a significant market opportunity as Intel, its main competitor for PC and server processors, stumbles on execution.

AMD’s chips have surpassed Intel’s in terms of performance, and investors are looking to see if the company has the offerings and execution to capture market share.

All four of AMD’s major segments grew during the quarter.

AMD said data center sales were up 83% year-over-year to $1.5 billion. The segment includes chips for cloud computing, and AMD said the growth was due to strong server processor sales.

Customer segment revenue, which consists of PC and laptop chip sales, rose 25% in the quarter to $2.2 billion, despite signs that computer sales are slowing at the end of a two-year pandemic-driven boom . AMD said the growth was due to the sale of mobile processors, probably for laptops.

Chip sales for consoles such as the Playstation 5 and Xbox Series X were also a high point for AMD during the quarter. Gaming segment sales were up 32% year-over-year to $1.7 billion, driven by console semi-custom chips, not gaming PC graphics processors.

AMD’s embedded segment, which includes network or automotive chips, reported revenue of $1.3 billion, boosted by AMD’s acquisition of Xilinx, which closed in the first quarter.

AMD stocks have fallen 31% so far in 2022 as investors have sold fast-growing semiconductor stocks amid fears of inflation and recession.

AMD said it bought back $920 million of its shares in the second quarter.

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