The semiconductor market has recently been free-falling due to fears of consumer spending decreasing. Some investors have argued that enterprise spending will be able to offset some of the headwinds in the consumer market. Today's video offers some insight, focusing on the recent earnings for Advanced Micro Devices (AMD 5.25%). Here are some highlights.

  1. On May 3, AMD reported its first-quarter results, causing the stock price to jump over 5% after hours. The company reported 71% year over year (YoY) revenue growth thanks to its recent acquisition of Xilinx. Excluding the acquisition, AMD would have grown revenue at 55% YoY. 
  2. AMD's computing and graphics segment was up 33% YoY, driven by the strength of its consumer products. The enterprise, embedded, and semi-custom segment also saw a strong growth of 88% YoY as cloud providers continue to heavily adopt its server processors.
  3. AMD also increased its guidance following the acquisition. For the second quarter, AMD expects to grow 69% YoY and 60% for the full year of 2022. Investors should keep an eye on share dilution after the recent acquisition, which is a topic I discuss in the video. 

*Stock prices used were the closing prices of May 3, 2022. The video was published on May 3, 2022.