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AMD Posts Second-Quarter Earnings Beat on Revenue Surge

AMD says revenue jumped 99%, with growth in the computing and graphics and enterprise and embedded and semi-custom segments.
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Advanced Micro Devices  (AMD) - Get Free Report beat Wall Street's second-quarter earnings expectations Tuesday, boosted by surging revenue.

Shares of the Santa Clara, Calif., semiconductor titan were up 1% to $92 in after hours trading at last check.

AMD reported net income of $710 million, or 58 cents a share, compared with $157 million, or 13 cents a share, a year ago. Adjusted earnings came to 63 cents a share.

Revenue totaled $3.85 billion, up 99% from a year ago.

Advanced Micro Devices Second-Quarter Earnings Live Blog

Analysts surveyed by FactSet were expecting the company to report earnings of 54 cents on revenue of $3.62 billion.

Revenue growth was driven by higher revenue in both the computing and graphics segment and enterprise and embedded and semi-custom segment.

"Our business performed exceptionally well in the second quarter as revenue and operating margin doubled and profitability more than tripled year-over-year,” president and CEO Lisa Su said in a statement. “We are growing significantly faster than the market with strong demand across all of our businesses." 

The computing and graphics segment, which covers GPU and PC CPU sales, saw revenue total $2.25 billion, up 65% year-over-year and 7% quarter-over-quarter driven by higher client and graphics processor sales.

Enterprise, embedded and semi-custom segment revenue was $1.60 billion, up 183% year-over-year and 19% quarter-over-quarter. The increases were driven by higher EPYC processor revenue and semi-custom product sales, the company said.

Sales in this segment are dominated by server CPUs and game console SoC.

Looking ahead, AMD said it expects third-quarter revenue of roughly $4.1 billion, up about 46% year-over-year. FactSet is calling for revenue of $3.82 billion.

For the full year 2021, AMD now expects revenue growth of about 60%, up from prior guidance of roughly 50%, driven by strong growth across all businesses. 

Last month, the company's shares rose after a report said the European Commission hadn't raised objections to the semiconductor titan’s proposed $35 billion takeover of peer chipmaker Xilinx  (XLNX) - Get Free Report.

In April, AMD posted modestly better-than-expected first quarter earnings and forecast solid near-term sales amid improving chip demand and stronger pricing linked to the global semiconductor shortage.