Technology · August 2, 2022

AMD results Q2 2022

Chris Stowers | Bloomberg | Getty Images

AMD reported results for the quarter ended June that beat estimates for earnings and revenue, but the chipmaker issued guidance for the current quarter that fell short of Wall Street expectations.

AMD stock fell as much as 5% at one point in extended trading.

Here’s how the company did it:

  • eps: $1.05 adjusted vs $1.03 expected, according to Refinitiv
  • revenue: $6.55 billion versus $6.53 billion expected, according to Refinitiv

The chipmaker said it expects revenue of $6.7 billion in the current quarter, plus or minus $200 million. Analysts expected $6.83 billion.

AMD currently has a significant market opportunity as its main competitor for PC and server processors, Intel, falters in execution.

AMD’s chips have outperformed Intel’s in terms of performance, and investors are looking to see if the company has the offering and execution to capture market share.

All of AMD’s four main segments grew during the quarter.

AMD said data center revenue was up 83% year over year to $1.5 billion. The segment includes chips for cloud computing, and AMD said the growth was due to strong sales for server processors.

Revenue in the client segment, which consists of sales of PC and laptop chips, rose 25% to $2.2 billion in the quarter, despite signs that computer sales are slowing at the end of a two-year pandemic-driven boom to have. AMD said the growth came from mobile processor sales, likely for laptops.

Selling chips for consoles like the Playstation 5 and Xbox Series X was also a highlight for AMD during the quarter. Gaming segment revenue rose 32% year over year to $1.7 billion, driven by “semi-custom” chips for consoles rather than GPUs for gaming PCs.

AMD’s embedded segment, which includes chips for networking or cars, posted $1.3 billion in revenue, boosted by AMD’s acquisition of Xilinx, which completed in the first quarter.

AMD stock is down 31% so far in 2022 as investors sold fast-growing semiconductor stocks amid inflation and recession fears.

AMD said it repurchased $920 million of its stock in the second quarter.