August 4, 2022: -AMD said results for the quarter that ended in June beat estimates for earnings and revenue, while the chipmaker issued a projection for the current quarter that tracked Wall Street expectations.
The chipmaker anticipated $6.7 billion in revenue during the current quarter, plus or minus $200 million. Pundits had predicted $6.83 billion.
AMD currently has a substantial market opportunity as its primary rival for PC and server processors, Intel, and labors with execution.
AMD’s chips have transcended Intel’s performance, and investors are looking to see if the company has the supply and execution to take market share from its rival.
All four of AMD’s practical components improved in the quarter, in which overall revenue soared 70% yearly.
AMD said information center sales surged 83% yearly to $1.5 billion. The segment contains chips for cloud computing and extensive enterprise customers. Solid sales for server processors drove the growth, the company said, which adds it doesn’t expect a slowdown in direction for these chips.
Client segment revenue composing PC and laptop chip sales increased 25% to $2.2 billion in the quarter despite warnings that computer sales have slowed at the end of a two-year pandemic-fueled boom. AMD said the growth was attributable to mobile processor sales potential for laptops.
However, AMD CEO Lisa Su announced that she saw declines in the current quarter for the PC business.
“We have taken a better traditional outlook on the PC business, so a quarter ago, we would have thought that the PC business would be down, let’s call it high single numbers,” Su said. “Our present view of the PC business is that it will be down mid-teens.”
Su said on a call with critics that AMD acknowledges taking market share in the server and PC needs. “We’re satisfied that we’re gaining share,” she said.
Gaming segment sales advanced 32% yearly to $1.7 billion on sales growth in “semi-custom” scraps for consoles. Sales of chips for consoles like the Playstation 5 and Xbox Series X were even a highlight. Nevertheless, illustration processors for gaming PCs decreased during the quarter.
AMD’s entrenched segment, including chips for networking or cars, reported $1.3 billion in sales, increased by AMD’s acquisition of Xilinx, conducted in the first quarter.
AMD stock is down 31% year to date as investors keep funded away from fast-growing semiconductor products in the face of inflation and recession. AMD said it repurchased $920 million of its stock in the quarter.