AMD Reports Mixed Q2 Results, Beats Revenue Estimates with Strong AI-Driven Q3 Outlook

Key Highlights:

• Q2 Earnings: Adjusted EPS of $0.48 (vs. $0.49 expected) on revenue of $7.6B (vs. $7.4B expected).

• Q3 Guidance: Projects $8.4B–$9B in revenue, surpassing Wall Street’s $8.3B estimate.

• Stock Reaction: Shares fell ~4% post-announcement despite a 44% YTD gain.

AI & Market Dynamics:

• China Impact: $800M revenue hit from U.S. chip restrictions, leading to a $155M operating loss. (Nvidia reported larger losses from the same policy.)

• Recovery Boost: Recent reversal of the ban may offset future losses.

• AI Chip Race: New MI350 series promises 4x AI compute power and 35x inferencing gains vs. predecessors, positioning AMD against Nvidia’s Blackwell.

Segment Performance:

• Data Center: Revenue hit $3.2B (in line with expectations).

• Client (PC CPUs): Surged to $3.6B (vs. $2.5B expected), reflecting strong demand.

Context: AMD’s report precedes Nvidia’s earnings later this month. While AMD trails Nvidia’s 77% 12-month stock surge, its AI roadmap and revised guidance signal growing competitiveness.

Data as of market close: AMD at $174.31 (-1.4%), after-hours dip to $166.62 (-4.4%).

Visual: CEO Lisa Su at Computex 2024 (Taipei), unveiling AMD’s AI strategy.

(Sources: Bloomberg consensus, company filings)

Why It Matters: AMD’s mixed quarter underscores AI’s dual role—near-term headwinds (China) vs. long-term growth (MI350, Data Center). Q3’s bullish outlook may reassure investors awaiting execution .