This isn’t funding recommendation. The writer has no place in any of the shares talked about. has a disclosure and ethics coverage.

Chip designer Advanced Micro Devices, Inc (AMD) continued its sturdy development of rising revenues yearly as its launched its newest earnings outcomes earlier at this time. AMD’s earnings report for the second quarter of 2022 noticed the corporate usher in $6.6 billion in income throughout this yr’s June quarter, to mark for a robust 70% annual progress at a time when its friends are scuffling with a weak economic system and document inflation. The income was a brand new document for AMD in a second quarter, and it got here courtesy of progress in all there of the corporate’s working segments which goal the non-public computing, knowledge middle computing and gaming and customized gadgets.

AMD Posts $1.5 Billion In Data Center Revenue During Q2 2022 As Segment Takes Center Spot In Earnings Reveal

The key focus space throughout at this time’s earrings report, as anticipated, was AMD’s knowledge middle. This section has seen huge progress over the previous few quarters and Q2 was no exception. AMD reveled that it managed to rake in $1.5 billion from knowledge middle, for an 83% annual progress that noticed the section by itself outpace the corporate’s general income progress and carry the latter to new information.

AMD defined that cloud computing drove knowledge middle progress, because it highlighted that the EPYC processors managed to realize hold of greater than 60+ cloud computing situations. However, all was not rosy for the information middle section, as AMD was not infallible to inflation and its working margin grew by a quite muted 7% yearly to 32% this yr as in comparison with the 25% on the finish of final yr’s second quarter. However, as a complete, working revenue progress outpaced income progress, as $472 million in Q2 2022 working revenue grew by 131% yearly.


AMD’s Data Center outcomes for the second quarter of this yr. Image: AMD

Despite one other sturdy efficiency by knowledge middle, shopper, or private computing remained AMD’s strongest section. During the quarter, the semiconductor designer introduced in $2.2 billion in income although private computing, for a 25% annual progress from final yr’s $1.7 billion. Operating margin remained comparatively flat because it grew by 1% yearly to 32%, however working revenue in itself grew by 26% to face at $676 million.

AMD’s non-GAAP gross margin, which excluded the affect of some acquired property, grew by 6% yearly to 54% and marked the third time that the corporate has posted a gross margin greater than 50% – a vital metric for its long run monetary fashions.

AMD Slips 4% In Aftermarket Despite Earnings Beat & One other Report Quarter

Moving in the direction of its stability sheet, AMD doubled its accounts receivable this quarter during the last, because it offers with a historic provide chain disaster. At the identical time, the corporate grew to become debt heavy as properly, with its $3 billion revolving credit score facility that was signed throughout the first quarter making its mark on the stability sheet throughout the second quarter as properly. AMD’s whole debt stood at $2.8 billion as Q2 closed, up from the $313 million final yr.

Finally, AMD expects to develop its revenues by one other 55% yearly throughout the second quarter, because it expects to earn roughly $6.7 billion by the tip of this yr’s September quarter. The agency additionally expects gross margins to stay flat, and on the identical time its full yr income steering place high line earnings at $26.3 billion for a 60% annual progress over fiscal yr 2021.

Commenting on the earnings, Jesse Cohen senior analyst at commented that:

“In distinction to Intel’s large miss final week, AMD really delivered a strong quarter, solidifying its spot as an more and more outstanding participant inside each the high-performance PC and knowledge middle CPU market.

“However, AMD sounded the alarm a few potential slowdown in demand and stock build-up, echoing the outlook of different chipmakers which have already reported earnings to this point.

“Despite near-term headwinds, AMD’s resilient market-share growth, largely at the expense of Intel, makes it attractively positioned for favourable long-term upside at current levels.”

The firm’s shares tanked instantly by roughly 5% after the earnings had been launched, however then skilled some volatility. At the time of publishing, they’re down. 4.24%.