Advanced Micro Devices (AMD) shares are rallying following the company’s second quarter earnings report, which beat expectations on both revenue and profit margins primarily due to strong AI chip sales. The chip company reported revenue of $5.8 billion, slightly above the estimated $5.7 billion, while adjusted earnings per share (EPS) came in at $0.69, edging past the projected $0.68 per share.
Yahoo Finance tech editor Dan Howley analyzes the earnings report, offering insights into AMD’s AI-related sales and the state of the PC market recovery.
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source
date: 2024-07-31 17:05:50
duration: 00:01:27
author: UCEAZeUIeJs0IjQiqTCdVSIg
AMD earnings: Stock jump fueled by AI chip sales in Q2
AMD, a leading semiconductor company, has reported its second-quarter earnings, and the results are impressive. The company’s stock has jumped by around 8% this morning, driven by strong sales of AI chips. In its earnings report, AMD revealed that its adjusted earnings per share came in at 69 cents, beating Wall Street’s expectations. Revenue also grew year-over-year, reaching $5.8 billion.
One of the key takeaways from the report is the company’s AI business, which is accelerating rapidly. AMD’s CEO, Lisa Sue, stated that the company is well-positioned to deliver strong revenue growth in the second half of the year, driven by demand for its AI chips. The company’s data center revenue, which includes sales of AI chips, reached $2.8 billion, beating expectations and jumping 115% from the same quarter last year.
Another significant area of growth for AMD is its sales of chips for PCs. The company’s PC segment reported revenue of $1.5 billion, beating expectations and growing from the prior year. This is an encouraging sign for the PC industry, which has been experiencing a turnaround following a significant slowdown after the initial surge in demand during the pandemic.
AMD’s strong earnings report is likely to set the tone for the rest of the quarter, with Intel and Nvidia reporting their earnings in the coming weeks. As the DeFi space continues to evolve, it’s interesting to note that AMD’s focus on AI chip sales reflects the growing importance of artificial intelligence in various industries.
