At the recent SXSW 2024 Conference, Lisa Su, CEO of AMD, discussed the company’s impressive second-quarter earnings, which outperformed Wall Street expectations and demonstrated strong growth in AI chip sales. AMD shares experienced a 3% uptick in extended trading.
For the quarter ending in June, AMD reported adjusted earnings per share of 69 cents, surpassing the expected 68 cents, and revenue of $5.83 billion, above the anticipated $5.72 billion. The company projects sales of around $6.7 billion for the current quarter, compared to Wall Street’s forecast of $6.61 billion in sales and 93 cents per share in earnings.
AMD’s net income saw a significant increase to $265 million, or 16 cents per share, from $27 million, or 2 cents per share, a year ago. Despite a 6% decline in AMD shares this year, the company remains the second-largest data center GPU vendor after Nvidia. Nvidia’s stock has surged over 100% in 2024, largely due to the demand for AI GPUs for advanced AI applications like ChatGPT.
Investors are keen to see AMD rival Nvidia with the MI300X AI chip and expand its market share in data center AI. AMD anticipates $4 billion in AI chip sales this year, comprising roughly 15% of total expected sales. The Data Center segment, driven by strong Instinct GPU shipments, grew 115% year-over-year to $2.8 billion, exceeding the $2.75 billion forecast by analysts.
AMD’s Client segment, which includes CPUs for laptops and servers, reported a 49% revenue increase year-over-year to $1.5 billion, indicating a recovery in the PC market post-pandemic. However, the Gaming segment, covering gaming consoles and 3D graphics GPUs, saw a 59% revenue decline to $648 million, missing expectations of $676 million.
Lastly, the Embedded segment, comprising products from the Xilinx acquisition for industrial customers, reported a 41% year-over-year decline to $861 million, but still outperformed the $856 million expected by analysts.
Original Story https://www.cnbc.com/2024/07/30/amd-earnings-report-q2-2024.html
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