AMD earnings for the second quarter of 2022

Chris Stowers | Bloomberg | Getty Images

AMD informed results for the quarter ended in June beat earnings and revenue estimates, but the chip maker gave guidance for the current quarter that beat Wall Street’s expectations.

AMD shares fell 5% at one point during extended trading.

Here’s how the company did it:

  • earnings per share: $1.05 adjusted for expected $1.03, according to Refinitiv.
  • Income: $6.55 billion vs. $6.53 billion expected, according to Refinitiv.

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

AMD currently has significant market opportunities as a major competitor in PC and server processors. Intel, stumbles with execution.

AMD chips have outperformed Intel in performance, and investors want to see if the company has the supply and execution to take market share.

All four of AMD’s major segments grew during the quarter, with total revenue up 70% year-over-year.

AMD said data center sales were up 83% year-over-year to $1.5 billion. This segment includes cloud computing chips, and AMD said the growth is due to strong sales of server processors.

Customer segment revenue, made up of sales of PC and laptop chips, rose 25% to $2.2 billion during the quarter, despite signs of a slowdown in computer sales at the end of a two-year pandemic-driven boom. AMD said the growth was driven by sales of mobile processors, likely for laptops.

Chip sales for consoles such as the Playstation 5 and Xbox Series X were also big highlights for AMD during the quarter. Gaming segment sales rose 32% year-on-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 automotive, reported $1.3 billion in sales, boosted by AMD’s acquisition of Xilinx, which was completed in the first quarter.

AMD shares fell 31% in 2022 as investors sold fast-growing semiconductor stocks in the face of inflation and recession fears.

AMD said it bought back $920 million worth of its shares in the second quarter.