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Advanced Micro Devices, Inc. (NASDAQ: AMD) reported second-quarter financial results after markets closed Tuesday. The firm posted $0.08 in earnings per share (EPS) and $1.53 billion in revenue, compared with consensus estimates that called for $0.08 in EPS and $1.52 billion in revenue. The same period from last year had $0.14 in EPS and $1.76 billion in revenue.

For the quarter, revenues were down 13% year over year due to lower revenue in the Computing and Graphics segment and 12% in the Enterprise, Embedded and Semi-Custom segment. Revenue was up 20% quarter over quarter due to higher revenue in both segments.

Computing and Graphics segment revenue was $940 million. Revenue was lower year over year primarily due to lower graphics channel sales, partially offset by increased client processor and datacenter GPU sales.

Enterprise, Embedded and Semi-Custom segment revenue was $591 million compared with last year. The year over year revenue decrease was primarily due to lower semi-custom product revenue, partially offset by higher EPYC processor sales.

Looking ahead to the third quarter, the company expects to see revenues of $1.8 billion, give or take $50 million, with a gross margin of 42%. Consensus estimates are calling for $0.23 in EPS and $1.95 billion in revenue for the coming quarter.

Dr. Lisa Su, AMD president and CEO, commented:

I am pleased with our financial performance and execution in the quarter as we ramped production of three leadership 7nm product families. We have reached a significant inflection point for the company as our new Ryzen, Radeon and EPYC processors form the most competitive product portfolio in our history and are well positioned to drive significant growth in the second half of the year.

Shares of AMD closed Wednesday at $33.87, with a 52-week range of $16.03 to $34.86. The consensus analyst price target is $31.79. Following the announcement, the stock was down 3% at $32.75 in the after-hours session.