Advanced Micro Devices, Inc. (NASDAQ:AMD) posts strong result

Advanced Micro Devices, Inc. (NASDAQ:AMD) stock fell 2.69% (As on August 3, 11:40:38 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the second quarter of FY 22. Record non-GAAP operating income was $2.0 billion, or 30% of revenue, up from $924 million or 24% a year ago primarily driven by higher revenue and gross profit. Record non-GAAP net income was $1.7 billion, up from $778 million a year ago primarily driven by higher operating income. Cash, cash equivalents and short-term investments were $6.0 billion at the end of the quarter and debt was $2.8 billion. AMD repurchased $920 million of common stock during the quarter. Cash from operations was a record $1.04 billion in the quarter, compared to $952 million a year ago. Free cash flow was $906 million in the quarter compared to $888 million a year ago.

AMD in the second quarter of FY 22 has reported the adjusted earnings per share of $1.05, beating the analysts’ estimates for the adjusted earnings per share of $1.03. The company had reported the adjusted revenue growth of 70 percent to $6.6 billion in the second quarter of FY 22, beating the analysts’ estimates for revenue of $6.53 billion. This is driven by growth across all segments and the inclusion of Xilinx revenue. Non-GAAP gross margin was 54%, an increase of 6 percentage points year-over-year, primarily driven by higher Data Center and Embedded segment revenue. Data Center segment revenue was $1.5 billion, up 83% year-over-year driven by strong sales of EPYC server processors. Client segment revenue was $2.2 billion, up 25% year-over-year driven by Ryzen mobile processor sales. Gaming segment revenue was $1.7 billion, up 32% year-over-year driven by higher semi-custom product sales, partially offset by a decline in gaming graphics revenue. Embedded segment revenue was $1.3 billion, up 2,228% year-over-year driven by the inclusion of Xilinx embedded revenue.

For the third quarter of 2022, AMD expects revenue to be approximately $6.7 billion, plus or minus $200 million, an increase of approximately 55% year-over-year led by growth in the Data Center and Embedded segments. AMD expects non-GAAP gross margin to be approximately 54% in the third quarter of 2022.

For the full year 2022, AMD continues to expect revenue to be approximately $26.3 billion, plus or minus $300 million, an increase of approximately 60% over 2021 led by growth in the Data Center and Embedded segments. AMD continues to expect non-GAAP gross margin to be approximately 54% for 2022.

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