Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Advanced Micro Devices Shares Drop 4% Despite Q2 Beat, Provides Guidance

Published 08/02/2022, 04:36 PM
Updated 08/02/2022, 04:37 PM
© Reuters Advanced Micro Devices Shares Drop 4% Despite Q2 Beat, Provides Guidance

© Reuters Advanced Micro Devices Shares Drop 4% Despite Q2 Beat, Provides Guidance

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares dropped more than 4% after-hours despite the company’s reported Q2 results, with EPS of $1.05 coming in better than the consensus estimate of $1.03.

Revenue grew 70% year-over-year to $6.6 billion, compared to the consensus estimate of $6.53 billion, driven by growth across all segments and the inclusion of Xilinx (NASDAQ:XLNX) revenue.

According to Dr. Lisa Su, Chair and CEO of AMD, the company delivered its eighth straight quarter of record revenue based on its strong execution and expanded product portfolio, with each segment growing significantly year over year. “We see continued growth in the back half of the year highlighted by our next generation 5nm product shipments and supported by our diversified business model,” added Su.

Data Center segment revenue grew 83% year-over-year to $1.5 billion, driven by strong sales of EPYC™ server processors. Client segment revenue grew 25% year-over-year to $2.2 billion, driven by Ryzen™ mobile processor sales. Gaming segment revenue grew 32% year-over-year to $1.7 billion, driven by higher semi-custom product sales, partially offset by a decline in gaming graphics revenue. Embedded segment revenue grew 2,228% year-over-year to $1.3 billion, driven by the inclusion of Xilinx embedded revenue.

The company expects Q3/22 revenue to be in the range of $6.5-6.9 billion, compared to the consensus estimate of $6.82 billion. Non-GAAP gross margin is expected to be approximately 54%.

For the full 2022 year, the company expects revenue of $26.3 billion, compared to the consensus estimate of $26.1 billion. Non-GAAP gross margin is expected to be approximately 54%.

By Davit Kirakosyan

Latest comments

Stocks miss earnings, push higher. Stocks beat earnings, price drops. We're living in contradictory times, trading feels like gambling.
Yep. Highly manipulated market. Only way to fix it is a massive reset to wipe all the manipulators out
Dude like 100 people own 95% of the stocks in existence.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.