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.
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.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appIn 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.
Earnings per share also came in above expectations at $0.69.
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%.
2Q24 RESULTS
- Revenues: $5.84 billion (+9% y/y); expected: $5.72 billion
- Gaming: $0.65 billion (-59% y/y)
- 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:
- Revenue: $6.4 - $7 billion (vs. forecasts: $6.62 billion)
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
