Advanced Micro Devices (AMD) reported outstanding second-quarter results, propelled by record-breaking data center revenue and surging demand for its AI chips. The company posted quarterly revenue of $5.84 billion, a 9% increase from the previous year, surpassing analysts’ expectations of $5.72 billion. Adjusted earnings were 69 cents per share, beating the anticipated 68 cents per share.
AMD’s data center segment was the standout performer, with revenue soaring 115% year-over-year to a record $2.83 billion. This impressive growth was driven by a significant increase in shipments of AMD Instinct graphics processors for AI applications and robust sales of its 4th Gen AMD Epyc server processors.
The client segment also saw substantial growth, with sales rising 49% year-over-year to $1.49 billion, thanks to strong demand for AMD Ryzen PC processors. However, the company experienced declines in its gaming and embedded processor segments.
Looking ahead, AMD forecasted third-quarter sales of $6.7 billion, slightly above Wall Street’s expectations of $6.61 billion. CEO Lisa Su expressed confidence in the company’s future, emphasizing the rapid advancements in generative AI as a key driver of demand for computing power across various markets. She highlighted the expected strong performance of the Instinct, Epyc, and Ryzen processors in the latter half of the year.
Following the earnings announcement, AMD’s stock surged 6.3% in after-hours trading to $147.20. Earlier in the day, the stock had closed at $138.44, down 0.9%.
“We delivered strong revenue and earnings growth in the second quarter driven by record data center segment revenue,” Su stated. “Our AI business continued to accelerate, positioning us well for robust revenue growth in the second half of the year.”
AMD’s impressive performance underscores its leadership in the AI and data center markets, solidifying its position as a key player in the tech industry.
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