AMD reported that revenue for the second quarter decreased by 18% compared to what it had been in the same period the previous year. Despite this, results still exceeded forecasts from analysts. The firm's projection for the third quarter came in lower than anticipated, with the customer section experiencing a significant decrease attributed to a subdued PC industry.
AMD revealed in its fiscal second-quarter earnings report on Tuesday that revenue had decreased by 18%, but still exceeded sales and profit estimates. Refinitiv consensus estimates for earnings were 57 cents per share, but AMD actually reported 58 cents per share, while Refinitiv consensus estimates for revenue were $5.31 billion, but AMD reported $5.36 billion. For the third quarter, AMD anticipates a revenue of $5.7 billion while analysts are expecting $5.81 billion. Despite a decrease in net income from $447 million to $27 million, AMD CEO Lisa Su said on the call with analysts that they are expecting a strong surge of data center business in the second half of the year that could account for 50%, plus or minus, in comparison to the first half. She additionally mentioned that AMD is increasing its AI-related R&D spending and has developed a strategy for AI-specific chips and software. Signaling the potential for AI to benefit PC chip sales, Su added that AI will be a major PC demand generator as Microsoft and other large software providers start to incorporate generative AI into their offerings. AMD's client group, including PC processors, saw a staggering 54% decrease in revenue; however, the company stated that market conditions are improving and expects the client segment to expand in the second half of the year. The data center segment reported a decline of 11% due to reduced server processor sales, while the embedded segment was the sole division to experience an increase in revenue of 16%. Lastly, AMD's gaming segment, which covers graphics processors for PCs and chips for consoles such as the PlayStation 5, had a 4% dip in sales to $1.6 billion, though demand for their semi-custom chips kept the drop to a minimum.
Comentarios