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31/07/24
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AMD Stock Higher on Higher-Than-Expected AI Sales, Outlook
On Wednesday, Advanced Micro Devices stock gained over 9% after it posted a win with second-quarter earnings slightly beating analyst expectations.
The chipmaker reported $0.69 of adjusted earnings per share, slightly more than the $0.68 estimate. The company’s revenue was also higher than forecasts, coming in at $5.84B against the expected $5.72B.
The performance is a strong showing in the competitive semiconductor market, and the company attributes its success to strong demand in its Client and Data Center segments.
Dr. Lisa Su, AMD’s CEO and Chair, underlined the company’s earnings and revenue growth and credited the acceleration of the AI business and record Data Center segment revenue.
Dr. Su stated the fast advances in generative AI were driving demand for more computing power in all markets, and this created substantial growth opportunities as AMD delivered leadership AI solutions across its business.
The company’s third-quarter 2024 financial outlook was also promising, and revenue guidance was set at $6.7B, plus or minus $300M. The forecast is higher than analysts’ consensus of $6.61B, indicating confidence in continued demand for the firm’s products, especially its Ryzen, EPYC, and Instinct processors.
AMD also increased its full-year MI300 outlook from $4.0B to $4.5B.
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