AMD revenues fall 18% to $5.36B as PC market struggles while AI rises
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Advanced Micro Devices reported that revenue in its second quarter was $5.36 billion, down 18% from a year earlier as the client PC market continues to climb back during the economic downturn.
But investors took the report as good news, as AI-related stocks such as AMD, which makes the processors and graphics processing units (GPUs) used in AI machines, are riding on high demand for AI. In after-hours trading, AMD’s stock rose 5% to $123.5 a share. PC market conditions also improved from the previous quarter.
Analysts expected Q2 earnings per share to come in at 57 cents on revenue of $5.31 billion. GAAP net income for Q2 came in at $27 million, or 2 cents a share, down 93% from a year ago. On a non-GAAP basis, net income for Q2 was $948 million, or 58 cents a share, down 45% from a year ago. So revenue was a miss but AMD beat the numbers on net income.
“We delivered strong results in the second quarter as 4th Gen Epyc and Ryzen 7000 processors ramped significantly,” said AMD CEO Lisa Su, in a statement. “Our AI engagements increased by more than seven times in the quarter as multiple customers initiated or expanded programs supporting future deployments of Instinct accelerators at scale. We made strong progress meeting key hardware and software milestones to address the growing customer pull for our data center AI solutions.”
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She said the company is on track to launch and ramp production of MI300 accelerators in the fourth quarter.
“We are pleased with our second
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