Advanced Micro Devices Inc (NEOE:AMD)

C$ 21.97 -0.86 (-3.77%) Market Cap: 271.22 Bil Enterprise Value: 267.89 Bil PE Ratio: 104.54 PB Ratio: 3.30 GF Score: 93/100

Q2 2024 Advanced Micro Devices Inc Earnings Call Transcript

Jul 30, 2024 / 09:00 PM GMT

Release Date Price: C$26.4 (-1.12%)

Transcript 10-Q8-K

Key Points

Positve

Advanced Micro Devices Inc (AMD) reported a 9% year-over-year increase in revenue to $5.8 billion, driven by strong sales in data center and client segments.
Data center segment revenue surged by 115% year-over-year to a record $2.8 billion, primarily due to the ramp-up of Instinct MI.300 GPU shipments and Epic CPU sales.
The company expanded its gross margin by more than three percentage points and grew EPS by 19%, with data center product sales accounting for nearly 50% of overall sales.
AMD's client segment revenue increased by 49% year-over-year, driven by strong demand for Ryzen processors and initial shipments of next-generation Zen 5 processors.
The company is on track to launch the MI.325X later this year and the MI.350 series in 2025, which are expected to offer significant performance improvements and maintain competitive positioning.

Negative

Gaming segment revenue declined by 59% year-over-year to $648 million, with expectations of further declines in the second half of the year.
Embedded segment revenue decreased by 41% year-over-year to $861 million, although there are signs of gradual recovery in the second half of the year.
The overall supply chain remains tight and is expected to stay constrained through 2025, which could impact production and delivery schedules.
Despite strong performance in certain segments, the company faces competitive pressures, particularly in the AI and data center markets, which require continuous investment in R&D and software capabilities.
The company is experiencing a gradual recovery in the embedded segment, indicating that it may take time to return to previous revenue levels.

Refinitiv StreetEvents Event Transcript
P R E L I M I N A R Y V E R S I O N

AMD.OQ - Advanced Micro Devices Inc
Q2 2024 Advanced Micro Devices Inc Earnings Call
Jul 30, 2024 / 09:00PM GMT

=====================
Conference Call Participants
=====================
* >>Mitchell J. Haws - VP of IR
* >>Lisa T. Su - Chair, President & CEO
* >>Jean X. Hu - Executive VP, CFO & Treasurer
* >>Ben Reitzes - Analyst
* >>Aaron Christopher Rakers - Analyst
* >>Timothy Michael Arcuri - Analyst
* >>Ross Clark Seymore - Analyst
* >>Matthew D. Ramsay - Analyst
* >>Vivek Arya - Analyst
* >>Joseph Lawrence Moore - Analyst
* >>Toshiya Hari - Analyst
* >>Stacy Aaron Rasgon - Analyst
* >>Harsh V. Kumar - Analyst
* >>Thomas James O'Malley - Analyst

=====================
Presentation
--------------------------------------------------------------------------------
>>Editor [1]
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