Key Points
Advanced Micro Devices (NASDAQ: AMD) reported a 50% year-over-year increase in revenue for Q2 2023, totaling $11.54 billion, despite a drop in share price. The company’s data center CPU revenue surged 107% to $6.7 billion. Adjusted earnings per share rose 246% to $1.66, surpassing expectations of $1.62.
Looking forward, AMD expects third-quarter revenue to grow 41% year-over-year to approximately $13 billion, with a stable gross margin of 56%. The company anticipates a significant opportunity in the AI market, forecasting that demand for data center CPUs will grow over 80% year-over-year in the second half of 2023 and over 70% by 2027.
AMD’s full-rack AI system, Helios, will begin shipping in Q4 2023, with major deals in place with clients like OpenAI and Microsoft, positioning the company to benefit from the rise of inference and agentic AI.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
