AMD Beats Q2 Targets On Record Data Center Sales

Advanced Micro Devices (AMD) precocious Tuesday bushed expert estimates for the 2nd 4th acknowledgment to grounds income of processors for information centers. It besides forecast income supra views for the existent quarter. AMD banal roseate successful extended trading.

↑ X NOW PLAYING AMD Executive Touts These AI Chip Advantages As Battle With Nvidia Heats Up

The Santa Clara, Calif.-based institution earned an adjusted 69 cents a stock connected income of $5.84 cardinal successful the June quarter. Analysts polled by FactSet had expected AMD net of 68 cents a stock connected income of $5.72 billion. On a year-over-year basis, AMD net accrued 19% portion income precocious 9%.

Data halfway gross jumped 115% twelvemonth implicit twelvemonth to $2.83 billion. A steep ramp successful shipments of AMD Instinct graphics processors for AI applications drove the income increase, the institution said. It besides noted beardown maturation successful 4th Gen AMD Epyc server processors.

AMD's lawsuit conception posted income of $1.49 billion, up 49% twelvemonth implicit year, driven by income of AMD Ryzen PC processors.

Meanwhile, income declined successful AMD's gaming and embedded processor segments.

AMD Stock Pops After Report

For the existent quarter, AMD forecast income of $6.7 billion, up 16%, based connected the midpoint of its outlook. Wall Street was modeling $6.61 cardinal successful third-quarter sales.

In after-hours trading connected the stock marketplace today, AMD banal climbed 6.3% to 147.20. During the regular session, AMD banal dipped 0.9% to adjacent astatine 138.44.

"We delivered beardown gross and net maturation successful the 2nd 4th driven by grounds information halfway conception revenue," AMD Chief Executive Lisa Su said successful a news release.

She added, "Our AI concern continued accelerating and we are good positioned to present beardown gross maturation successful the 2nd fractional of the twelvemonth led by request for Instinct, Epyc and Ryzen processors. The accelerated advances successful generative AI are driving request for much compute successful each market, creating important maturation opportunities arsenic we present enactment AI solutions crossed our business."

AMD stock is connected 2 IBD lists: Leaderboard and Tech Leaders.

Follow Patrick Seitz connected X, formerly Twitter, astatine @IBD_PSeitz for much stories connected user technology, bundle and semiconductor stocks.

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