Advanced Micro Devices (AMD) reported second-quarter revenue and issued current-quarter guidance above analysts’ projections Tuesday, but shares slipped in after-hours trading.
The Santa Clara, Calif.-based firm posted revenue that jumped 32% year-over-year to a record $7.67 billion, well above the $7.43 billion consensus estimate of analysts polled by Visible Alpha. Adjusted earnings per share of $0.48 matched expectations.
Data Center unit revenue climbed 14% to $3.2 billion, slightly below expectations of $3.32 billion. Client revenue soared 67% to a record $2.5 billion and Gaming revenue surged 73% to $1.1 billion, with the former matching and the latter well above estimates. Embedded segment revenue fell 4% to $824 million, a tick below projections.
“We delivered strong revenue growth in the second quarter led by record server and PC processor sales,” CEO Lisa Su said. “We are seeing robust demand across our computing and AI product portfolio and are well positioned to deliver significant growth in the second half of the year.”
Gross margin was 43% but AMD said it would have been 54% had it not been “impacted by the U.S. Government’s export control on our AMD Instinct MI308 data center GPU products,” which amounted to a roughly $800 million hit. AMD had warned in May that it would take charges from tighter restrictions on chip exports to China, though it said last month that it planned to restart exports of its MI308 chips once it received final approval from U.S. authorities.
For the current quarter, AMD sees revenue between $8.4 billion and $9.0 billion, above Visible Alpha consensus of $8.28 billion. The outlook does not include any revenue from MI308 shipments to China.
Shares initially rose in late trading following the report before reversing course, and recently were down about 3%. They ended Tuesday’s regular session at $174.31, up nearly 45% this year.
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