AMD Tops Q2 Earnings Estimates and Provides Strong Outlook, But Leaves Investors Unimpressed AMD reported second-quarter earnings that exceeded analyst expectations, with revenue reaching $11.5 billion and earnings per share (EPS) of $1.66, surpassing the Bloomberg consensus estimates of $11.3 billion in revenue and $1.62 in EPS. The company also raised its third-quarter revenue guidance to a range of $12.7 billion to $13.3 billion, above the $12.5 billion projected by analysts. Despite these positive results, AMD’s stock fell more than 8% following the announcement, indicating investor skepticism. The earnings report highlighted strong performance in key segments. Data center sales surged to $6.7 billion, up from $3.2 billion in the same period last year and exceeding analysts’ expectations of $6.5 billion. The client segment contributed $3.1 billion in revenue, slightly above the $3 billion forecast, while the gaming division generated $779 million, nearly matching the $781 million analysts had anticipated. Additionally, AMD reported capital expenditures of $808 million during the quarter, significantly higher than the previously estimated $298 million. CEO Lisa Su emphasized the company’s momentum, citing growing demand for its Epyc processors, expanding Instinct deployments, and the ramp-up of its Helios platform. She noted that AI is driving a surge in compute demand across all markets, positioning AMD to capitalize on long-term growth opportunities. “We enter the second half with strong momentum as Epyc demand accelerates, Instinct deployments scale, and Helios begins to ramp,” Su stated. However, the stock’s decline reflects broader challenges in the semiconductor industry.#nvidia #amd #lisa_su #philadelphia_semi_conductor_index #helios_platform
