AMD's Q2 better than expected as computing, graphics processor demand stronger
AMD's second quarter results were better than expected as it saw strong demand for its computing and graphics processors.
The company reported second quarter non-GAAP earnings of 2 cents a share on revenue of $1.22 billion, up 19 percent from $1.03 billion a year ago. AMD reported a net loss of $16 million, or 2 cents a share.
Wall Street was expecting AMD to break even on non-GAAP earnings per share on revenue of $1.15 billion.
AMD has been busy this quarter and has launched server processors called EPYC, Ryzen CPUs and outlined its graphics chip plans. That latter effort is the one that has boosted AMD shares, Revenue is barely up from a year ago, but investors are betting that AMD can be a counterweight to Nvidia, which is grabbing data center workloads with its graphics processor units.
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CEO Dr. Lisa Su said the company is seeing margins expand due to the net products in the pipeline.
AMD's computing and graphics unit delivered second quarter sales of $659 million, up 15 percent from a year ago. Graphics processors and Ryzen desktop chips had strong demand. The enterprise, embedded and semi-custom unit saw revenue fall 5 percent to $563 million in the second quarter.
As for the outlook, AMD said third quarter revenue should be up 23 percent from the second quarter with lower inventory levels. For the year, AMD said revenue should increase by a mid- to high-teens percentage.