Semiconductors
AMD Reports in Line while AI Story to Improve from Here
AMD reported a slight beat on the top line at $7.685B in revenue compared to estimates of $7.43B. This represents growth of 31.6% compared to growth of 27.4% expected. Where the beat is somewhat problematic is that it was driven by Client and Gaming, rather than the data center. However, in terms of a bright spot in the report and a data center inflection point, Q3 estimates were at $8.3B going into the print and management is guiding for $8.7B at the midpoint for growth of 28% YoY and 13% growth QoQ. This will be driven by data center, as was alluded to on the earnings call: “Sequentially, we expect revenue to grow by approximately 13%, driven by strong double-digit growth in the Data Center segment with the ramp of our AMD Instinct MI350 series GPU products [...]” with Client expecting to see only modest growth.
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