AMD beats expectations and raises Q3 outlook 📈
AMD is gaining in trading after the market close. The company reported impressive revenue growth, beat analysts' profitability expectations, and raised its Q3 2024 guidance.Â
AMD generated revenue of $5.84 billion in 2Q24, beating consensus expectations by 2% and 9% year-on-year. The company recorded impressive growth in its most important segment, Data Center, where revenues rose by as much as 115% y/y to $2.8 billion. This growth was driven primarily by strong growth in shipments of AMD Instinct GPUs and strong growth in sales of fourth-generation AMD EPYC processors.Â
In the Gaming segment the company reported a decrease in revenue of 59% y/y, but in the current situation this segment is not a priority for AMD, hence the weaker result does not disappoint investors.Â
Earnings per share also came in above expectations at $0.69.Â
The company raised its Q3 revenue forecast to $6.4 - $7 billion. This implies an average value in the range of $6.7 billion, which would represent a 16% y/y increase. At the gross margin level, the company expects 53.5%.Â
2Q24 RESULTSÂ
- Revenues: $5.84 billion (+9% y/y); expected: $5.72 billionÂ
- Gaming: $0.65 billion (-59% y/y)Â
- Client: $1.5 billion (+49% y/y)
- Data Center: $2.8 billion (+115% y/y)
- Earnings per share: $0.69; forecasts: 0,68 $
3Q OUTLOOK:Â
- Revenue: $6.4 - $7 billion (vs. forecasts: $6.62 billion)Â
The company is AMD is gaining nearly 8% in after-hours trading following the release of its results. Source: xStationÂ