AMD’s Data Center Revenue Surges to $6.7 Billion but Stock Drops 9% Due to Growth Expenses

AMD Reports Record Q2 Revenue, Shares Drop in After-Hours Trading

Advanced Micro Devices (NASDAQ: AMD) reported a record second-quarter revenue of $11.5 billion, up 50% year-over-year, driven largely by a 107% increase in data center revenue, which reached $6.7 billion. Despite these strong results, AMD’s shares fell approximately 9% in after-hours trading following the earnings announcement on August 1, 2023.

The company provided a third-quarter revenue outlook of around $13 billion, including a flat gross margin of approximately 56%. AMD’s capital expenditures surged nearly threefold to $808 million, indicating significant investment in future growth. Even with rising revenues, concerns over stagnant margins and increasing expenses remained evident, with non-GAAP earnings per share reaching $1.66, an 82% increase year-over-year.