Lisa Su Keynote: Lisa Su in conversation with Ryan Patel as part of the SXSW 2024 Conference & Festival event in Austin, Texas on March 11, 2024 Center held. (Photo by Travis P. Ball/SXSW Conference & Festivals via Getty Images)
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Advanced Micro Devices report Second quarter financial report The company’s revenue topped Wall Street expectations on Tuesday and showed continued growth in sales of its artificial intelligence chips.
AMD shares rose 6% in after-hours trading.
Here’s how AMD’s results for the quarter ended June 29 compare to LSEG’s consensus estimates:
- Earnings per share: Adjusted to 69 cents vs 68 cents
- income: US$5.83 billion, expected US$5.72 billion
AMD said it had sales of about $6.7 billion in the quarter, compared with Wall Street expectations of earnings of 93 cents per share on sales of $6.61 billion.
The chipmaker reported net income of $265 million, or 16 cents a share, compared with net income of $27 million, or 2 cents a share, in 2019. period one year ago.
AMD shares will fall about 6% in 2024, despite the company being the second-largest supplier of data center GPUs after AMD Nvidia. Because AI GPUs are needed to train and deploy advanced artificial intelligence such as ChatGPT, Nvidia’s stock price has more than doubled this year, and Nvidia has become the chip of choice.
Investors hope to see AMD take market share away from long-time rival Nvidia with its MI300X AI chip and signal the growth of its data center AI business. Earlier this year, AMD said it expected AI chip sales to reach $4 billion this year, accounting for about 15% of the company’s expected sales.
AMD’s data center division’s AI chip sales increased 115% year-on-year to $2.8 billion. Analysts polled by Street Account expected data center revenue of $2.75 billion. AMD said the growth was due to strong growth in shipments of the company’s AI chips, which AMD calls Instinct GPUs.
AMD’s core business is manufacturing central processing units (CPUs) for notebook computers and servers. The company’s customer segment reported PC sales, up 49% year-over-year to $1.5 billion, compared with Street Account expectations of $1.43 billion. The growth suggests the PC market is recovering from a slump in the post-pandemic years.
AMD also makes gaming console chips and 3D graphics GPUs, which fall under the company’s gaming category. AMD reported gaming revenue of US$648 million, a year-on-year decrease of 59%. Analysts expected sales of $676 million per Street Account.
The company’s embedded division, which consists of products acquired through the acquisition of Xilinx for industrial customers in 2022, posted sales of $861 million, down 41% year-over-year, beating Wall Street expectations of $856 million.
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