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AMD reported results for the quarter that ended in June that beat estimates for profit and revenue, but the chipmaker gave a forecast for the current quarter that beat Wall Street expectations.
AMD shares fell as much as 5% in extended trading.
Here’s how the company did it:
- EPS: $1.05, adjusted, vs. $1.03 expected, according to Refinitiv
- Revenue: $6.55 billion, vs. $6.53 billion expected, according to Refinitiv
The chipmaker said it expected revenue of $6.7 billion in the current quarter, plus or minus $200 million. Analysts were expecting $6.83 billion.
AMD currently has a significant market opportunity as its main rival for PC and server processors, Intel, stumbles in execution.
AMD’s chips have outperformed Intel’s, and investors are looking to see if the company has the supply and execution to take market share.
AMD’s four main segments grew during the quarter, with overall revenue up 70% year-over-year.
AMD said data center sales rose 83% year over year to $1.5 billion. The segment includes chips for cloud computing, and AMD said the growth was due to strong sales of server processors.
Revenue from the client segment, which includes PC and laptop chip sales, rose 25% to $2.2 billion in the quarter, despite signs that PC sales slowed at the end of a two-year boom fueled by the pandemic. AMD said the growth was attributed to sales of mobile processors, likely for laptops.
Chip sales for consoles like the Playstation 5 and Xbox Series X were also a highlight for AMD in the quarter. Gaming segment sales rose 32% year-over-year to $1.7 billion, driven by growth in sales of “semi-custom” chips for consoles. However, graphics processors for gaming PCs declined in the quarter, according to CEO Lisa Su.
AMD’s embedded segment, which includes chips for networking or cars, posted $1.3 billion in sales, boosted by AMD’s acquisition of Xilinx, which was completed in the first quarter.
AMD shares are down 31% in 2022 as investors have been selling the fast-growing semiconductor stock on fears of inflation and recession.
AMD said it repurchased $920 million of its stock in the second quarter.