Key Points
Advanced Micro Devices (NASDAQ: AMD) reported second-quarter revenue of $7.69 billion, a 32% increase year-over-year, but adjusted earnings per share (EPS) fell 30% to $0.48, missing analysts’ expectations of $0.49. The earnings decline was partially attributed to an $800 million write-down from Chinese export controls.
Data center revenue rose 14% to $3.2 billion, impacted by restrictions on the MI308 GPUs in China, which is expected to improve once export licenses are granted. Meanwhile, the CPU and gaming segment saw a significant revenue increase of 69% to $3.6 billion. AMD projects Q3 revenue will grow by about 28%, forecasting up to $8.7 billion, excluding potential sales to China.
As of now, AMD’s stock is up approximately 30% year-to-date despite recent declines following the earnings report, suggesting potential buy opportunities for investors looking at future AI market growth.
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