For the quarter gone by, AMD reported revenue of $11.54 billion, higher than expectations of $11.28 billion and a growth of 50% on a year-on-year basis. The Earnings Per Share (EPS) of $1.66, was also higher than expectations of $1.62.
AMD expects revenue to be $13 billion in the current quarter, with a plus-minus divergence of $300 million. Average analyst expectations came up to $12.52 billion, while some projections were for as high as $14 billion.
Growth during the quarter was driven by AMD’s data center business, which saw sales rise by 107% from last year to $6.7 billion. CPU and GPU sales led to this growth. AMD CFO Jean Hu expects the data center sales to accelerate in the second half of the year, driving overall revenue growth and earnings expansion.
CEO Lisa Su expects AMD’s data center sales to double in 2027, and its server revenue to rise more than 80% as the demand for both accelerators and CPUs is growing higher than what the company had previously anticipated. Su also said that AMD has grabbed market share from rival Intel in the CPU market.
AMD’s capex surged to $808 million from $282 million last year and $389 million in the March quarter. Su said that although they expect the market to decline in the second half, it has actually held up better than what most people would have thought.
AMD shares ended 9% lower in extended trade at $472.21. The stock had ended 7% higher in the regular trading session on Tuesday, taking its year-to-date advance to 132%.
