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AMD’s Record Q2 Fueled By Data Center, Embedded Products
‘Competition is a good thing. The data center is a big part of it and we’re having some success with their workstation products as well,’ says Dominic Daninger, vice president of engineering at Burnsville, Minn.-based Nor-Tech.
AMD said it logged another record quarter with $6.6 billion in sales, helped by booming data center and embedded products revenue.
“We delivered our eighth straight quarter of record revenue based on our strong execution and expanded product portfolio,” said AMD chairwoman and CEO Lisa Su on a call with analysts Tuesday. “Each of our segments grew significantly year-over-year, led by higher sales of our data center and embedded products.”
The Santa Clara, Calif.-based chip giant reported second-quarter revenue of $6.6 billion, operating income of $526 million, and net income of $447 million and diluted earnings per share of 27 cents. Of note, embedded segment revenue for the quarter was $1.3 billion, up 2,228 percent year-over-year driven by the inclusion of embedded revenue from Xilinx, which AMD acquired earlier this year.
AMD’s data center segment revenue was $1.5 billion, up 83 percent year-over-year driven by strong sales of EPYC server processors.
AMD’s second-quarter results come less than one week after chip giant Intel reported disappointing second-quarter results and AMD surpassed Intel’s market cap.
Dominic Daninger, vice president of engineering at Burnsville, Minn.-based Nor-Tech, said he was pleased with AMD’s results. “Competition is a good thing,” he said. “The data center is a big part of it and we’re having some success with their workstation products as well. We’ll be looking at their GPUs for some specialty applications. I do think we’ll see a cool down like they said, but it’s always hard to tell. They can still hit some big deals out there and do all right.”
In terms of guidance, AMD said it expects third-quarter revenue to be approximately $6.7 billion, up about 55 percent year-over-year led by growth in the data center and embedded segments. For the full year, AMD said it expects revenue to be $26.3 billion, an increase of 60 percent over 2021 thanks to the data center and embedded segments.
In response to several analysts who questioned Su on those numbers, she said third-quarter and fourth-quarter guidance implies that revenue growth will be led by the data center and embedded business and new products that will debut in Q4.
“The [third-quarter] guidance implies that the revenue growth is to be led by the data center as well as some increase in our game console business which historically peaks in the third quarter,” she said. “As we go into the fourth quarter, the growth there will be led by the data center as well as our embedded business…and new products that will ramp up in [the fourth quarter] ... We see continued growth in the back half of the year.”
On the gaming business, Su said the consumer graphics and game console business has been very strong, and AMD has been able to get additional supply on consumer graphics. It comes, she said, on the heels of strong demand last year.
Shares of AMD’s stock traded down about 6 percent to $92.84 in after-hours trading Tuesday.
Shane Snider contributed to this report.