Advanced Micro Devices Inc (NASDAQ:AMD) shares are moving lower on Wednesday after the company reported mixed results for the second quarter.
What To Know: AMD reported revenue of $7.69 billion for the second quarter, beating estimates of $7.41 billion, but adjusted earnings per share of 48 cents fell short of estimates by one cent.
Revenue increased 32% on a year-over-year basis as data center revenue grew 14% and client and gaming revenue jumped 69%. AMD said revenue in its embedded segment was down 4% year-over-year.
Gross margin of 43% was also impacted by export controls on the company’s Instinct MI308 GPUs, which led to approximately $800 million in inventory and related charges in the quarter.
“We are seeing robust demand across our computing and AI product portfolio and are well positioned to deliver significant growth in the second half of the year, driven by the ramp of our AMD Instinct MI350 series accelerators and ongoing EPYC and Ryzen processor share gains,” said Lisa Su, chair and CEO of AMD.
AMD guided for third-quarter revenue in the range of $8.4 billion to $9 billion versus Benzinga Pro estimates of $8.15 billion.
Following the company’s quarterly results, Morgan Stanley analyst Joseph Moore maintained an Equal-Weight rating and lowered the price target from $185 to $168. Meanwhile, Stifel maintained a Buy and raised the price target from $161 to $190, Raymond James maintained an Outperform and lifted the price target from $120 to $200 and Benchmark maintained a Buy and raised the price target from $170 to $210.
AMD Price Action: AMD shares were down 4.88% Wednesday morning, trading at $165.80 at the time of publication, according to Benzinga Pro.
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