AMD Pops as Outlook Signals PC Recovery is Near
Advanced Micro Devices (AMD:US) shares rose about 2.5% in early Wednesday trading after the chipmaker reported Q2 results and offered a revenue forecast for this quarter.
The company reported a profit per share of $0.58 for the second quarter, just ahead of the consensus of $0.57. Revenue fell 18% year-over-year to $5.36 billion, again modestly better than the Street at $5.32 billion.
The sales outperformance came despite the Client business segment seeing a 44% YoY revenue decline amid a weak PC market.
“We delivered strong results in the second quarter as 4 Gen EPYC and Ryzen 7000 processors ramped significantly,” said AMD Chair and CEO Dr. Lisa Su.
The Chief Executive also noted that AI engagements increased by more than seven times in the quarter while AMD remains on track to ship the first MI300 GPUs – AMD’s high-end AI chips of the newest generation – in the fourth quarter.
For this quarter, AMD sees revenue in the range of $5.4 billion to $6.0 billion with the midpoint missing the consensus for $5.84B in Q3 sales. The company sees Data Center and Client segment sales up a double-digit percent on a quarter-to-quarter basis.
On the earnings call, Su said interest in the MI300 family of chips is “very high.”
Congressmen Ro Khanna and Josh Gottheimer have been trading AMD shares this year. Shares are up 78.7% year-to-date.
