In this video, I will be going over Advanced Micro Devices‘ (NASDAQ: AMD) Q2 earnings report and talking about why investors should look at any weakness in the stock as an opportunity.
Revenue grew 70% year over year (YOY) to $6.55 billion.
The data center segment’s revenue grew 83% YOY to $1.5 billion.
The client segment grew 25% YOY to $2.2 billion.
The gaming segment, which is under pressure, grew 32% YOY to $1.7 billion. Management does expect some growth toward the end of the year with the launch of the RDNA 3 graphics card.
The embedded segment grew over 2,000% YOY to $1.3 billion. This growth was primarily driven by the inclusion of Xilinx revenue.
Gross profit grew 93% YOY to $3.53 billion, and gross margin came in at 54%.
Earnings per share grew 67% to $1.05 YOY but was down 7% quarter over quarter.
Operating income more than doubled year over year.
The company still expects full-year 2022 revenue to grow by approximately 60% to $26.3 billion, up from the previous 31% YOY growth.
Management expects Q3 revenue to come in at $6.7 billion, representing 55% YOY growth. This projection is taking into consideration a slowing PC market (which Intel warned about).
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*Stock prices used were the closing prices of August 2, 2022. The video was published on August 3, 2022.
Neil Rozenbaum has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices and Intel. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.