Advanced Micro Devices reported second-quarter earnings on Tuesday that beat expectations, but the stock slumped in extended trading.
Here’s how the chipmaker did versus LSEG consensus estimates for the quarter ended June 27: – EPS: $1.66, adjusted, versus $1.62 expected – Revenue: $11.54 billion versus $11.28 billion expected Overall, AMD revenue climbed 50% from $7.69 billion a year ago, a sign of the company’s central position in the market for artificial intelligence chips
AMD’s Data Center unit is what is driving the company’s growth. Data Center sales were $6.7 billion, up 107% on an annual basis, which the company attributed to central processing unit and graphics processing unit sales. AMD’s stock has nearly tripled over the past year, both on optimism that its AI chips, branded Instinct, will take a meaningful amount of a growing market from Nvidia, as well as the resurgence of the CPU — which AMD sells under the brand name Epyc — which AI experts now say is an essential component for running agents.
AMD said it expects about $13 billion in revenue for the current quarter, plus or minus $300 million, versus LSEG expectations of $12.52 billion. Some analysts had been looking for guidance as high as $14 billion. In July, AMD raised its expectations for the size of the semiconductor industry, saying it could be worth $2 trillion per year by 2028.