AMD Q2 2024 Upcoming Earnings
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What to Watch for in AMD's Upcoming Earnings Report
📅 AMD will announce its Q4 2024 earnings report on 30th July 2024
Advanced Micro Devices (AMD) is scheduled to announce its second-quarter earnings after the market closes on Tuesday. Investors will likely be focused on record growth in the data center sector and robust guidance, driven by the surge in artificial intelligence (AI).
AMD will reveal its revenue projections for the third quarter, and investors will be paying close attention, as sentiment around the stock has been less favourable compared to many of its AI chipmaker counterparts.
Furthermore, AMD will announce revenue for its data center segment, and investors will be keenly observing continued growth fueled by AI demand.
In the first quarter, AMD's data center business achieved a record-high revenue of $2.3 billion, an 80% increase from the same period last year, driven by sales of MI300 chips used in AI data centers.
However, AMD expects Data Center segment revenues to increase by a double-digit percentage, mainly due to the ramp-up of data center GPUs on a sequential basis. Client segment revenues are also expected to rise.
On a year-over-year (YoY), AMD anticipates significant increases in Data Center and Client segment revenues, driven by a robust product portfolio.
The chipmaker has been benefiting from its strong portfolio and an expanding partner base. Its fourth-generation EPYC processor has been consistently deployed by hyperscalers to power their internal workloads and public instances.
As of the end of the first quarter of 2024, AMD had over 900 public cloud instances available. Amazon (AMZN), Google, and Microsoft (MSFT) increased their usage of fourth-gen EPYC processor offerings with new instances and regional deployments.
Additionally, Microsoft, Meta Platforms, Oracle, and other cloud providers announced further MI300X deployments during the reported quarter.
Moreover, AMD’s near-term outlook is hindered by weakness in the Embedded and Gaming segments.
For the second quarter of 2024, revenues in the Embedded and Gaming segments are anticipated by the company to drop by a substantial double-digit percentage year over year. Embedded segment revenues are expected to remain flat, while Gaming segment revenues are projected to decline significantly by a double-digit percentage.
Additionally, AMD has introduced the Ryzen AI 300 Series, the third generation of its AI-enabled mobile processors, and the Ryzen 9000 Series processors for laptop and desktop PCs.
The recent acquisition of Silo AI enhances AMD’s AI ecosystem. The company has been actively acquiring companies to bolster its AI capabilities, spending $125 million on a dozen acquisitions in the past 12 months. Notable recent acquisitions include Nod.ai and Mipsology.
The chipmaker anticipates second-quarter 2024 revenues to be $5.7 billion, with a margin of $300 million. At the midpoint of this range, it reflects a year-over-year growth of about 6% and a sequential growth of around 4%.
AMD stock has experienced significant gains, rising 65% from $90 in early January 2021 to around $150 currently, compared to an approximately 45% increase for the S&P 500 over the same roughly three-year period.
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