In this video, I will be going over Advanced Micro Devices' (AMD -2.55%) 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.