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AMD Q2 2022 Results

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AMD reported results for the quarter ending June that beat earnings and revenue estimates, but the chipmaker gave a forecast for the current quarter that lagged Wall Street expectations.

AMD stock fell as much as 5% at one point in extended trading.

Here’s how the company did it:

  • PES: $1.05, adjusted, vs $1.03 expected, according to Refinitiv
  • Revenue: $6.55 billion, vs. $6.53 billion expected, according to Refinitiv

The chipmaker said it expects $6.7 billion in revenue in the current quarter, plus or minus $200 million. Analysts expected $6.83 billion.

AMD currently has a significant market opportunity as its main rival for PC and server processors, Intel, stumbles with execution.

AMD’s chips have outperformed Intel’s, and investors are looking to see if the company has the supply and execution to take market share.

AMD’s four main segments grew in the quarter, in which overall revenue grew 70% year-over-year.

AMD said data center sales rose 83% year over year to $1.5 billion. The segment includes chips for cloud computing and AMD said the growth was driven by strong sales of server processors.

Customer segment revenue, which includes sales of PCs and laptop chips, increased 25% to $2.2 billion in the quarter despite signs of slowing computer sales late in the year. a two-year boom fueled by the pandemic. AMD said the growth was driven by sales of mobile processors, likely for laptops.

Sales of chips for consoles like the Playstation 5 and Xbox Series X were also a highlight for AMD in the quarter. Gaming segment sales grew 32% year-over-year to $1.7 billion, driven by “semi-custom” chips for consoles, not graphics processors for PCs of game.

AMD’s embedded segment, which includes chips for networking or cars, posted $1.3 billion in revenue, was boosted by AMD’s acquisition of Xilinx, which was completed in first trimester.

AMD stock is down 31% so far in 2022 as investors sell off fast-growing semiconductor stocks amid fears of inflation and recession.

AMD said it repurchased $920 million of its stock during the second quarter.