On July 30th, AMD reported a revenue of $5.8 billion, marking a 9% year-over-year increase. The company’s gross margin was 49%, with an operating income of $269 million and a net income of $265 million, resulting in diluted earnings per share of $0.16. On a non-GAAP basis, AMD’s gross margin stood at 53%, with an operating income of $1.3 billion and a net income of $1.1 billion, translating to a diluted earnings per share of $0.69.
The company attributed its robust performance to record Data Center segment revenue, driven by strong demand for Instinct, EPYC, and Ryzen processors. AMD’s AI business also showed significant acceleration, positioning the company for strong revenue growth in the second half of the year. The Data Center segment saw revenue of $2.8 billion, up 115% year-over-year, primarily due to a steep increase in AMD Instinct™ GPU shipments and 4th Gen AMD EPYC™ CPU sales.
Jean Hu, AMD EVP, CFO, and Treasurer, highlighted that the company exceeded the midpoint of its revenue guidance for Q2, driven by strong growth in both the Data Center and Client segments. Additionally, AMD expanded its gross margin and delivered solid earnings growth, while increasing strategic AI investments to build the foundation for future growth.
Key Metrics:
• Revenue: $5.8 billion, up 9% year-over-year and 7% sequentially.
• Gross Profit: $2.9 billion, with a gross margin of 49%, up 17% year-over-year.
• Operating Income: $269 million, a significant increase from $(20) million in Q2 2023.
• Net Income: $265 million, up 881% year-over-year.
Non-GAAP Financial Results:
• Gross Margin: 53%
• Operating Income: $1.3 billion, up 18% year-over-year.
• Net Income: $1.1 billion, up 19% year-over-year.
• Diluted Earnings Per Share: $0.69, up 19% year-over-year.
AMD also provided an optimistic outlook for the third quarter of 2024, expecting revenue to be approximately $6.7 billion, reflecting a year-over-year growth of about 16% and a sequential growth of around 15%.
