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AMD earnings Q2 2022


AMD reported results for the quarter resulted in June that beat estimates for revenue and income, however the chipmaker gave a forecast for the present quarter that trailed Wall Road expectations.

AMD inventory fell 6% in prolonged buying and selling.

This is how the corporate did:

  • EPS: $1.05, adjusted, versus $1.03 anticipated, in keeping with Refinitiv
  • Income: $6.55 billion, versus $6.53 billion anticipated, in keeping with Refinitiv

The chipmaker mentioned it anticipated $6.7 billion in income in the course of the present quarter, plus or minus $200 million. Analysts had anticipated $6.83 billion.

AMD at present has a major market alternative as its main rival for PC and server processors, Intel, stumbles with execution.

Chris Stowers | Bloomberg | Getty Photographs

AMD’s chips have surpassed Intel’s when it comes to efficiency, and traders want to see if the corporate has the availability and execution to take market share from its rival.

All 4 of AMD’s main segments grew in the course of the quarter, by which total income soared 70% yr over yr.

AMD mentioned information heart gross sales surged 83% yr over yr to $1.5 billion. The section contains chips for cloud computing and enormous enterprise clients. Robust gross sales for server processors drove the expansion, the corporate mentioned, including it would not anticipate a slowdown in demand for these chips.

Consumer section income, which is comprised of PC and laptop computer chip gross sales, rose 25% to $2.2 billion in the course of the quarter regardless of indicators that laptop gross sales have been slowing on the finish of a two-year pandemic-fueled increase. AMD mentioned the expansion was attributable to cellular processor gross sales, probably for laptops.

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Nevertheless, AMD CEO Lisa Su admitted that she noticed declines within the present quarter for the PC enterprise.

“Now we have taken a extra conservative outlook on the PC enterprise, so 1 / 4 in the past we’d have thought that the PC enterprise could be down let’s name it excessive single digits,” Su mentioned. “Our present view of the PC enterprise is that it will likely be down mid-teens.”

Su mentioned on a name with analysts that AMD believes it’s taking market share within the server and PC markets. “We’re happy that we’re gaining share,” she mentioned.

Gross sales of chips for consoles just like the Ps 5 and Xbox Sequence X have been additionally a spotlight. Gaming section gross sales rose 32% yr over yr to $1.7 billion on gross sales progress in “semi-custom” chips for consoles. Nevertheless, graphics processors for gaming PCs declined in the course of the quarter.

AMD’s embedded section, which incorporates chips for networking or automobiles, reported $1.3 billion in gross sales, was boosted by AMD’s acquisition of Xilinx, which was accomplished within the first quarter.

AMD inventory is down 31% yr so far as traders have backed away from fast-growing semiconductor shares within the face of inflation and recession fears.

AMD mentioned it repurchased $920 million of its inventory in the course of the second quarter.



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