AMD reports Q2 revenue down 18% YoY to $5.36B, net income down 94% YoY to $27M, Client revenue down 54% YoY to $998M, and Data Center revenue down 11% to $1.3B
lower graphics rev, but semi-custom up. Mark Hachman / @markhachman : Just to be clear, since Wall St. seems to sometimes fixate on non-GAAP: analysts expected $0.57 EPS, and AMD's non-GAAP EPS is $0.58. (I don't give a hoot about beating EPS expectations or the stock price.) Forums: r/hardware : AMD revenue falls 18% as PC market shows continued weakness
The significance is that data-center revenue also contracted, limiting its ability to offset the PC-driven Client and graphics downturn. Higher semi-custom revenue provided a counterweight, but not enough to prevent a steep decline in profit.
First-order effects
AMD's Client segment falls to $998M and graphics revenue declines, directly reducing revenue from its PC-facing businesses.
Data Center revenue declines to $1.3B while net income drops to $27M, leaving AMD with less near-term earnings support across its major chip segments.
Second-order effects
The persistence of Client declines increases pressure on AMD to manage product mix and costs while PC demand remains weak; a small non-GAAP EPS beat does not change the underlying revenue contraction.
With both Client and Data Center down, higher semi-custom revenue becomes more important as a buffer, making AMD's quarterly performance more dependent on segment-level offsets rather than broad-based growth.
Third-order effects
If the pattern persists, AMD's recovery will depend less on a single PC rebound and more on whether data-center and semi-custom businesses can become durable countercyclical sources of growth.
The results illustrate how diversified chip portfolios can still face synchronized demand pressure when PC, graphics, and data-center segments all weaken, though the balance can change as end markets recover.
The trend: This is one data point in a semiconductor downcycle in which PC weakness compresses client-chip revenue while vendors seek resilience through data-center and semi-custom businesses.
$AMD's “strong” Q where everything is down YoY ... except OpEx 😂 $120/share for 58 cents & its AI strategy is to undercut archrival $NVDA so it will be value destructive (semis=cutthroat industry). DataCenter? -11% PCs? -54% Gaming? -4% Auto? +16% (ofc) “growth” these days. [imag…
AMD client segment revenue was $998M, down 54% (!) year over year due to reduced processor shipments from a weaker PC market. Up 35% sequentially, though as Ryzen CPU sales grew significantly. Gaming segment down 4% to $1.6B (-10% seq) — lower graphics rev, but semi-custom up.
Overall strong results vs expectation, but operating loss of $20m, yet net income gain of $27m. A mix of weakness in some markets and good strength in others. Also, $135m to expand adaptive computing research operations in Ireland.
$AMD I am not sure what is the excitement about in this report. They missed DC revenues at $1.32B vs $1.37B estimate, down -11% YoY. Margins down -400 bps YoY. Q3 revenue guidance missed at $5.7B vs $5.82B estimate. [image]
$AMD 7x increase in AI engagement/pipeline does the trick. Lisa Su was clear the MI300 will ramp for #AI in Q4 and even the MI250 has growing demand now. Stocks are about the known future.. progress over data.
AMD reports 2Q23 profits of $27 million, down 94% Q over Q, on revenue of $5.36B, down 18%. EPS is 2 cents. Analysts polled by Yahoo Finance expected AMD to report EPS of $0.57 on revenue of $5.31B, with an outlook of $5.82B.
Just to be clear, since Wall St. seems to sometimes fixate on non-GAAP: analysts expected $0.57 EPS, and AMD's non-GAAP EPS is $0.58. (I don't give a hoot about beating EPS expectations or the stock price.)