Advanced Micro Devices
It's also a big change from last quarter which showed a major slowing on the consumer tech side but continued strength on the enterprise side. Overall, AMD shares are down 34% YTD and off by 42% from all-time highs in December of last year. Due to the pullback in shares, while earnings have continued to explode higher, valuations have markedly improved with a forward P/E of 19 which is only slightly above the market average despite much faster earning and revenue growth in addition to higher margins.
Inside the Numbers
In Q2, AMD reported $1.05 in earnings per share which was above expectations of $1.03 per share. Revenue came in at $6.55 billion which also topped expectations of $6.53 billion in revenue.
AMD's share price gave up gains as it forecast $6.7 billion in revenue for the current quarter, while analysts were looking for $6.8 billion. Despite a sharp slowdown in semiconductor demand, the company continues to gain market share from Intel
Thus, it's not surprising to see that data center sales were up 83% to reach $1.5 billion. This includes chips for cloud computing, servers, and enterprise customers. Unlike other parts of the business, it doesn't expect to see a slowdown in demand for this particular area.
Client segment revenue, which encompasses PC and laptop chip sales, rose by 25% and reached $2.2 billion. It's sharply slowed but remains positive which is relatively impressive given that many consumer tech companies are experiencing a contraction in sales and earnings. The company also lowered its outlook for the segment to grow in the high single digits from its earlier projection of mid-teens growth.
Gaming sales increased by 32%, reaching $1.7 billion as AMD chips are used in the Playstation 5