Advanced Micro Devices Inc
Q2 2024 Earnings
Did AMD Beat Earnings? Q2 2024 Results
Advanced Micro Devices delivered a broad beat in Q2 2024, with adjusted earnings of $0.69 per share edging past the $0.68 consensus estimate and revenue of $5.83 billion topping expectations by 1.94%, rising 8.9% year-over-year as the company's artificial intelligence momentum shifted firmly into a higher gear. The central driver was a record $2.83 billion from the Data Center segment, up 115% year-over-year, powered by accelerating shipments of Instinct MI300X GPUs for AI workloads alongside strong EPYC CPU demand, with segment operating income vaulting to $743 million from just $147 million a year ago. AMD's shares rallied sharply on the results, reflecting investor confidence that the company is establishing itself as a credible competitor in the AI accelerator market. Management raised its full-year Instinct GPU revenue outlook and issued Q3 guidance of approximately $6.70 billion in revenue, implying roughly 16% year-over-year growth, with non-GAAP gross margin expanding to approximately 53.5%, signaling continued Data Center-led momentum into the second half of 2024.
- Steep ramp of AMD Instinct GPU shipments driving record Data Center revenue
- Strong growth in 4th Gen AMD EPYC CPU sales
- Higher AMD Ryzen processor sales driving Client segment recovery
- Higher Data Center revenue mix driving gross margin expansion
“We delivered strong revenue and earnings growth in the second quarter driven by record Data Center segment revenue. Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, EPYC and Ryzen processors. The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business.”
AMD CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2024, AMD expects revenue of approximately $6.7 billion, plus or minus $300 million, representing approximately 16% year-over-year growth and approximately 15% sequential growth at the midpoint. Non-GAAP gross margin is expected to be approximately 53.5%. Non-GAAP operating expenses are expected to be approximately $1.9 billion. The non-GAAP effective tax rate is expected to be approximately 13%, with a diluted share count of approximately 1.64 billion shares. AMD expects strong revenue growth in the second half of 2024 led by demand for Instinct, EPYC, and Ryzen processors.
AMD YoY Financials
AMD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.