Advanced Micro Devices (AMD) shares moved higher in after-hours trading as the semiconductor manufacturer’s second quarter financial results topped expectations on the top and bottom lines.
For the quarter, the company posted revenue of $5.36 billion, down 18% from $6.55 billion in the year-ago quarter but ahead of the Wall Street estimate of $5.32 billion, per Zacks Consensus Estimate.
Adjusted earnings per share of $0.58 also fell from 2Q 2022, down 45% from $1.05, but beat the forecast of $0.57.
“We delivered strong results in the second quarter as 4th Gen EPYC and Ryzen 7000 processors ramped significantly,” AMD CEO Dr. Lisa Su said in a statement.
Dr. Su added that the company’s AI engagements increased by more than seven times during the quarter as multiple customers initiated or expanded programs supporting future deployments of Instinct accelerators at scale.
“We made strong progress meeting key hardware and software milestones to address the growing customer pull for our data center AI solutions and are on track to launch and ramp production of MI300 accelerators in the fourth quarter,” Dr. Su said.
For the third quarter, AMD forecast revenue of $5.7 billion, plus or minus $300 million, and said it expects its non-GAAP gross margin to be about 51%.
This was below expectations, with analysts polled by Refinitiv expecting revenue guidance of $5.82 billion.
“Looking to the third quarter, we expect our Data Center and Client segment revenues to each grow by a double-digit percentage sequentially driven by increasing demand for our EPYC and Ryzen processors, partially offset by Gaming and Embedded segment declines,” AMD CFO Jean Hu commented.
But investors were not immediately deterred by the company's weaker-than-expected sales outlook, with AMD shares up 5.7% at US$124.26 shortly after the release of its 2Q results on Tuesday evening.
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