AMD Exceeds Q2 Targets Record Sales at Data Centers

AMD is a chipmaker. AMD beat analyst expectations during the quarter’s second quarter due to record-setting numbers of processors sold for data centers. AMD shares climbed.

From Investor’s Business Daily

Advanced Micro Devices ( AMD ) late on Tuesday surpassed analyst expectations of the 2nd quarter due to record-setting numbers of processors sold to data centers. The company also predicted sales that were higher than expectations of the current period. AMD stock climbed during extended trading.

X AMD Executive Tosses These AI Chip Benefits as The Battle Against Nvidia Gets Hotter

AMD Santa Clara, Calif.-based company made an adjusted profit of 70 cents per share on revenues of $5.84 billion during this quarter. Analysts surveyed by FactSet had predicted AMD earning 68 cents per share, based on the sales figure that totaled $5.72 billion. If you compare year-to-year, AMD earnings increased 19 percent while sales increased 9.9%.

Data center revenues increased by 115% over the course of a year at $2.83 billion. An accelerated increase in shipment of AMD Instinct graphics processors designed for AI applications fueled the sales rise, AMD Instinct said. The company also reported a significant increase in 4th Generation AMD Epyc server processors.

AMD’s client segment reported revenues that reached $1.49 billion, which is up 49% over the last year thanks to the the sales of AMD Ryzen PC processors.

However, sales have declined in AMD’s embedded and gaming processor segments.

AMD Stock Pops After Report

For the quarter that is currently in effect, AMD forecast sales of $6.7 billion, which is up 16% based on the middle of its forecast. Wall Street was modeling $6.61 billion in sales for the third quarter.

After-hours trading in the market for stocks this morning, AMD stock climbed 6.3 percent to 147.20. During the normal trading market, AMD stock dipped 0.9 percent to close at 138.44.

“We have seen strong revenue growth and earnings growth during the second quarter fueled by record revenue from the data center segment,” AMD Chief Executive Lisa Su said in a press release.

She said, “Our AI business continued growing and we are placed to provide significant revenue growth during the second quarter of this year driven by the demand of Instinct, Epyc and Ryzen processors. The rapid advancements in artificial intelligence (AI) that is generative AI have created demand for more computation in all markets, resulting in substantial growth opportunities for us as we offer the leading AI solutions across our entire business.”

AMD’s stock is listed on two IBD lists: Leaderboard and Tech Leaders.

The HTML0 Twitter account follows Patrick Seitz on X, previously Twitter @IBD_PSeitz. @IBD_PSeitz to read more about consumer technology semiconductor, software and stock.