Lisa Su on the Keynote: Lisa Su in Dialog with Ryan Patel as a part of SXSW 2024 Convention and Festivals held on the Austin Conference Middle on March 11, 2024 in Austin, Texas. (Photograph by Travis P. Ball/SXSW Convention & Festivals by way of Getty Pictures)
Travis P. Ball | Sxsw Convention & Festivals | Getty Pictures
Superior Micro Units reported second-quarter earnings on Tuesday that beat Wall Road expectations for income and confirmed continued development in gross sales of the corporate’s AI chips.
AMD shares rose 3% in prolonged buying and selling.
This is how AMD did versus LSEG consensus expectations for the quarter resulted in June:
- Earnings per share: 69 cents adjusted versus 68 cents
- Income: $5.83 billion versus $5.72 billion anticipated
AMD mentioned it expects about $6.7 billion in gross sales within the present quarter, versus Wall Road expectations of $0.93 in earnings per share on $6.61 billion of gross sales.
The chipmaker reported web revenue of $265 million, or 16 cents per share, versus web revenue of $27 million, or $0.02 per share within the year-ago interval.
AMD shares are down about 6% in 2024, though the corporate is the second-largest vendor of information middle GPUs after Nvidia. Nvidia’s inventory has greater than doubled this 12 months as AI GPUs are required for coaching and deploying superior AI like ChatGPT and Nvidia has turn out to be the chip of selection.
Buyers wish to see AMD take market share away from its longtime rival Nvidia with its MI300X AI chip and sign development in its knowledge middle AI enterprise. Earlier this 12 months, AMD mentioned it anticipated $4 billion in AI chips gross sales this 12 months, or about 15% of the corporate’s anticipated gross sales.
AMD AI chip gross sales are reported within the firm’s Information Middle section, which grew 115% year-over-year to $2.8 billion. Analysts polled by Road Account have been anticipating $2.75 billion in Information Middle income. AMD mentioned the expansion was due to the sturdy improve in shipments of the corporate’s AI chips, which it calls Intuition GPUs.
AMD’s core enterprise is making central processors (CPUs) for laptops and servers. Gross sales for PCs are reported within the firm’s Consumer section, which rose 49% year-over-year to $1.5 billion, versus expectations of $1.43 billion from Road Account. That development means that the PC market is recovering from a number of years of post-pandemic droop.
AMD additionally makes chips for gaming consoles and GPUs for 3D graphics, that are reported within the firm’s gaming class. AMD reported $648 million in gaming income, down 59% year-over-year. Analysts have been anticipating $676 million in gross sales, per Road Account.
The corporate’s embedded section, which is made up of merchandise acquired via the Xilinx acquisition in 2022 for industrial clients, reported $861 million in gross sales, dropping 41% year-over-year, and beating Wall Road expectations of $856 million.
