Listicle
- Adjusted EPS: 69 cents, beating estimates of 68 cents and last year’s 58 cents.
- Revenue: $5.84 billion, an 8.9% increase year-over-year (y/y), exceeding the $5.73 billion estimate.
- Data Center Revenue: $2.83 billion, a substantial rise from $1.32 billion y/y, and surpassing the $2.75 billion estimate.
- Gaming Revenue: $648 million, down 59% y/y, slightly above the estimate of $646.8 million.
- Client Revenue: $1.49 billion, up 49% y/y, exceeding the $1.45 billion estimate.
- Embedded Revenue: $861 million, down 41% y/y, above the $850 million estimate.
- Adjusted Gross Margin: 53%, up from 50% y/y, and matching estimates.
- Capital Expenditure: $154 million, a 23% increase y/y, higher than the $127.1 million estimate.
- Adjusted Operating Income: $1.26 billion, an 18% increase y/y, slightly above the $1.25 billion estimate.
- Adjusted Operating Margin: 22%, up from 20% y/y, and slightly higher than the 21.8% estimate.
- Free Cash Flow: $439 million, a 73% increase y/y, below the $1.33 billion estimate.
- R&D Expenses: $1.58 billion, a 9.7% increase y/y, matching estimates.
- Third Quarter Revenue Expectation: Approximately $6.7 billion, plus or minus $300 million.
- Big Drivers for Second Half: Strong demand for AI products like Instinct, EPYC, and Ryzen processors.
- Positive Execution in 2Q24: Driven by strong growth in Data Center and Client segments, says AMD EVP, CFO, and Treasurer Jean Hu.
- Analyst Ratings: 51 buys, 12 holds, and 0 sells.
Advanced Micro Devices on Smartkarma
On Smartkarma, top independent analysts like Baptista Research and William Keating have been providing insightful coverage on Advanced Micro Devices (AMD). Baptista Research‘s report titled “Advanced Micro Devices Inc. (AMD): Growth Opportunities in Data Center CPU & Artificial Intelligence (AI) – Major Drivers” emphasizes AMD’s impressive first-quarter 2024 performance under CEO Dr. Lisa Su, with revenue reaching $5.5 billion and strong growth in Data Center and Client segment sales.
Meanwhile, William Keating‘s report, “AMD. It’s A Marathon, Not A Sprint,” highlights Q124 revenues of $5.5 billion, with a forecast of $5.7 billion for Q224. Despite some share price fluctuations, the report mentions possible further growth opportunities for AMD in the coming months. Overall, the analyst sentiment leans bullish, foreseeing positive prospects for AMD’s competitive roadmap, innovation, and growth catalysts.
A look at Advanced Micro Devices Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Advanced Micro Devices Inc. (AMD) has a mixed long-term outlook. While the company scores well in resilience with a score of 4, indicating its ability to withstand market fluctuations, its scores in value and growth factors are moderate at 3 and 2 respectively. However, AMD lags behind in terms of dividend and momentum with scores of 1 and 2. This suggests that while the company may have a stable footing, there may be challenges in terms of dividend payouts and growth acceleration in the long run.
Advanced Micro Devices Inc. (AMD) operates in the semiconductor industry, providing a range of products including microprocessors, chipsets, and graphics solutions. With a global customer base, AMD also offers assembly, testing, and packaging services. Despite its varied product offerings, AMD’s overall Smart Scores indicate a nuanced outlook, with strengths in resilience but weaknesses in terms of dividends and momentum. Investors may need to consider these factors carefully when evaluating the company’s long-term prospects.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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