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 stock climbed.
By Investor’s Business Daily
Advanced Micro Devices ( AMD ) late Tuesday beat analyst estimates for the second quarter thanks to record sales of processors for data centers. It also forecast sales above views for the current quarter. AMD stock rose in extended trading.
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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 profits of 68 cents per share, based on the sales figure in the range of $5.72 billion. If you compare year-to-year, AMD earnings increased 19 percent while sales increased 9percent.
Data center revenue increased by 115% year-over-year at $2.83 billion. An accelerated increase in the sales of AMD Instinct graphics processors used in AI applications fueled the sales growth, according to the company. The company also reported a significant increase in 4th generation AMD Epyc server processors.
AMD’s client segment reported revenue that reached $1.49 billion, an increase of 49% year-over-year due to 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 percent, 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 the day before, AMD stock climbed 6.3 percent to 147.20. In the normal session, AMD stock dipped 0.9 percent, closing 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 also said, “Our AI business continued growing and we are placed to provide substantial revenue growth in the second quarter of the year, driven by the demand in Instinct, Epyc and Ryzen processors. The rapid advancements in the field of generative AI have created demand for more computation in all markets, resulting in huge growth opportunities as we provide the leading AI solutions throughout our business.”
AMD’s inventory is listed on two IBD lists: Leaderboard and Tech Leaders.
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