By
Godfrey Benjamin
April 18th, 2024
All four AMD major segments increased in the last quarter, contributing to the high revenue.
Despite surpassing estimates in Q2 2022, semiconductor company Advanced Micro Devices or AMD (NASDAQ: AMD) gave a forecast for the current quarter lower than expectations. In Q2 2022, AMD recorded revenue of $6.55 billion, exceeding Wall Street’s estimate of $6.53 billion. Also, the quarterly revenue represents a 70% jump YoY. According to the quarterly reports, adjusted earnings per share for the quarter was $1.05, over the $1.03 analysts expected. Furthermore, gross profit increased 65% YoY from $1.8 billion to $3 billion, and operating expenses surged 151% to $2,508 year-over-year.
AMD Sees Eighth Straight Quarter Record Revenue in Q2 2022
Speaking on the Q2 2022 strong results, AMD Chair and CEO Dr. Lisa Su said it is the eighth straight quarter of record revenue. The CEO said the company was able to attain the milestone due to its strong execution and expanded product portfolio. She continued:
“Each of our segments grew significantly year-over-year, led by higher sales of our data center and embedded products. 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.”
AMD also repurchased common stock worth $920 million in the second quarter. At the end of the three months ended June 30th, cash, cash equivalents, and short-term investments were $6 billion, and the debut was $2.8 billion. Cash from operations hit a record of $1.4 billion, compared to $952 million in the same period of the previous year. While free cash flow was $888 million a year ago, free cash flow was $906 million in Q2 2022.
AMD at the Verge of Taking Intel’s Market Share
AMD has a great chance to take over the market as Intel (NASDAQ: INTC) is in steady decline. Intel is AMD’s major rival in the semiconductor space and recently released disappointing quarterly earnings. Intel also slumped 8% after announcing its second quarter financial report last week. More so, Intel has shed over 30% since the year started. The company has also lost nearly 23% in the last three months and plunged 2.65% over the past month. The steady losses, including a 10.38% fall in the last five day, gives AMD a significant opportunity in the industry. Although AMD stock is down 31% in its year-to-date record, the company has advanced almost 32% over the past month. Fingers are crossed as investors are waiting to see if the company, which gained 10.54% in the last five days, can take market share from Intel.
All four AMD major segments increased in the last quarter, contributing to the high revenue.
However, AMD gave a gloomy outlook for the current quarter. The CEO foresees declines for the PC business in Q3 2022.
“We have taken a more conservative outlook on the PC business, so a quarter ago we would have thought that the PC business would be down let’s call it high single digits. Our current view of the PC business is that it will be down mid-teens,” said she.