AMD Q2 2023 Earnings Report
Key Takeaways
AMD announced Q2 2023 revenue of $5.4 billion, a gross margin of 46%, an operating loss of $20 million, net income of $27 million, and diluted earnings per share of $0.02. On a non-GAAP basis, the company reported a gross margin of 50%, operating income of $1.1 billion, net income of $948 million, and diluted earnings per share of $0.58.
Data Center segment revenue was $1.3 billion, down 11% year-over-year.
Client segment revenue was $998 million, down 54% year-over-year, but increased 35% sequentially.
Gaming segment revenue was $1.6 billion, down 4% year-over-year.
Embedded segment revenue was $1.5 billion, up 16% year-over-year.
AMD
AMD
Forward Guidance
For the third quarter of 2023, AMD expects revenue to be approximately $5.7 billion, plus or minus $300 million, and expects non-GAAP gross margin to be approximately 51%.
Positive Outlook
- Revenue to be approximately $5.7 billion, plus or minus $300 million
- Data Center segment revenues to grow by a double-digit percentage sequentially
- Client segment revenues to grow by a double-digit percentage sequentially
- Increasing demand for our EPYC processors
- Increasing demand for our Ryzen processors
Challenges Ahead
- Actual results could differ materially depending on market conditions
- Actual results could differ materially depending on the factors set forth under “Cautionary Statement”
- Gaming segment declines
- Embedded segment declines
- Adjustments to arrive at the GAAP gross margin outlook typically include stock-based compensation, amortization of acquired intangible assets and acquisition-related and other costs.