NASDAQ$AMD

Advanced Micro Devices Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

AMD reported strong Q2 2023 results driven by the ramp of 4th Gen EPYC and Ryzen 7000 processors.

AMD announced Q2 2023 revenue of $5.4 billion, a gross margin of 46%, an operating loss of $20 million, net income of $27 million, and diluted earnings per share of $0.02. On a non-GAAP basis, the company reported a gross margin of 50%, operating income of $1.1 billion, net income of $948 million, and diluted earnings per share of $0.58.

  • Data Center segment revenue was $1.3 billion, down 11% year-over-year.
  • Client segment revenue was $998 million, down 54% year-over-year, but increased 35% sequentially.
  • Gaming segment revenue was $1.6 billion, down 4% year-over-year.
  • Embedded segment revenue was $1.5 billion, up 16% year-over-year.

Headline financials

Total Revenue

$5.36B

Previous: $6.55B-18.2%
EPS (adj)

$0.58

Previous: $1.05-44.8%
Gross Margin

46.0%

No prior period
Operating Margin

0.0%

No prior period
Capital Expenditures

-$283M

Previous: -$203M-39.4%
Free Cash Flow

-$256M

Previous: $244M-204.9%
Net Income

$27M

Previous: $447M-94.0%
Operating Income

-$20M

Previous: $526M-103.8%
Gross Profit

$2.44B

Previous: $3.03B-19.3%
Cash & Equivalents

$3.84B

Previous: $4.96B-22.6%
Total Assets

$68B

Previous: $67.5B+0.7%
Stock-Based Comp

$348M

Previous: $292M+19.2%

Revenue & EPS history

AMD · Revenue · Quarterly

$5.36B

Q2 2023-18.2%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

AMD · $5.36B total across 4 segments · Q2 2023

  • Gaming
    $1.58B-4.5%
  • Embedded
    $1.46B+16.1%
  • Data Center
    $1.32B-11.1%
  • Client
    $998M-53.6%

Forward guidance

For the third quarter of 2023, AMD expects revenue to be approximately $5.7 billion, plus or minus $300 million, and expects non-GAAP gross margin to be approximately 51%.

Tailwinds

  • Revenue to be approximately $5.7 billion, plus or minus $300 million
  • Data Center segment revenues to grow by a double-digit percentage sequentially
  • Client segment revenues to grow by a double-digit percentage sequentially
  • Increasing demand for our EPYC processors
  • Increasing demand for our Ryzen processors

Headwinds

  • Actual results could differ materially depending on market conditions
  • Actual results could differ materially depending on the factors set forth under “Cautionary Statement”
  • Gaming segment declines
  • Embedded segment declines
  • Adjustments to arrive at the GAAP gross margin outlook typically include stock-based compensation, amortization of acquired intangible assets and acquisition-related and other costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.7%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+6.2%

Avg return

30 days after

39%

27 / 69 earnings

Positive

+47.8%

Q1 2016

Best reaction

-23.2%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.7%+29.0%+31.1%
Q4 2025-9.6%-10.8%-20.5%
Q3 2025+3.6%-2.4%-12.8%
Q2 2025-6.4%-1.2%-13.3%
Q1 2025+1.9%+9.6%+17.8%
Q4 2024-6.3%-7.5%-16.1%
Q3 2024-7.1%-11.3%-14.8%
Q2 2024+3.4%-5.2%+4.1%
Q1 2024-9.9%-6.0%+4.1%
Q4 2023-5.7%-0.1%+8.3%
Q3 2023+12.3%+16.7%+26.0%
Q2 2023-4.4%+1.2%-7.6%
Q1 2023-9.0%+0.2%+33.2%
Q4 2022+16.8%+18.8%+11.0%
Q3 2022-2.4%+3.5%+29.0%
Q2 2022+1.4%+5.7%-14.9%
Q1 2022+10.7%+6.1%+20.9%
Q4 2021+7.4%+8.2%-2.0%
Q3 2021-0.1%-1.7%+29.0%
Q2 2021+6.7%+15.7%+16.8%
Q1 2021-1.6%-4.4%-8.2%
Q4 2020-5.6%-9.0%-12.4%
Q3 2020-7.1%-8.4%+5.4%
Q2 2020+10.3%+12.3%+21.5%
Q1 2020-5.0%-11.7%-8.4%
Q4 2019-3.6%-4.6%-10.7%
Q3 2019-1.7%+3.6%+17.0%
Q2 2019-9.1%-12.1%-6.1%
Q1 2019-3.2%+1.9%+1.2%
Q4 2018+14.4%+21.5%+16.6%
Q3 2018-23.2%-32.8%-22.8%
Q2 2018+13.3%+20.0%+48.1%
Q1 2018+9.4%+7.8%+34.2%
Q4 2017+3.2%-6.5%-10.7%
Q3 2017-12.6%-16.0%-19.4%
Q2 2017+4.2%-1.5%-11.7%
Q1 2017-22.4%-23.4%-15.9%
Q4 2016+13.7%+15.4%+31.0%
Q3 2016-3.7%+10.8%+28.7%
Q2 2016+7.9%+29.0%+40.9%
Q1 2016+47.8%
Q4 2015-11.3%
Q3 2015-0.5%
Q2 2015-8.7%
Q1 2015-4.6%
Q4 2014+2.5%
Q3 2014+4.2%
Q2 2014-17.8%
Q1 2014+9.6%
Q4 2013-12.2%
Q3 2013-13.7%
Q2 2013-8.0%
Q1 2013+2.9%
Q4 2012+11.0%
Q3 2012-21.3%
Q2 2012-13.7%
Q1 2012-2.6%
Q4 2011+2.5%
Q3 2011-1.6%
Q2 2011-0.2%
Q1 2010-0.7%
Q1 2011-3.1%
Q4 2008-6.2%
Q4 2010-6.2%
Q3 2009+6.2%
Q3 2010+6.2%
Q2 2009-0.1%
Q4 2009-0.1%
Q2 2010-0.1%

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