AMD Q2 recap: Stable headline numbers, however knowledge heart weak spot weighs on shares

Superior Micro Units (AMD) delivered Q2 outcomes (hyperlink to earlier submit for extra) that topped income expectations however disillusioned on the information heart entrance, a key development section tied to AI.

• Adjusted EPS: $zero.48, simply shy of the $zero.49 consensus

• Income: $7.69 billion, above the $7.40 billion estimate

• Q3 Steerage: $eight.7 billion income (vs. $eight.31 billion anticipated); gross margin ~54%

• China Impression: Outlook excludes MI308 AI chip gross sales to China as U.S. license approvals stay pending. AMD expects a $1.5 billion income hit this 12 months from U.S. export curbs.

Whereas headline outcomes have been stable, knowledge heart income rose simply 14% to $three.2 billion, lagging investor expectations amid comparability to Nvidia’s far stronger development. CEO Lisa Su cited decrease AI chip gross sales to China and the transition to the brand new MI350 collection, which is now in quantity manufacturing.

Regardless of robust year-to-date positive factors, AMD shares fell greater than 5% in after-hours commerce, as markets reassessed AI momentum and knowledge heart competitiveness heading into Nvidia’s earnings later this month.

NASDAQ (NQ futures) decrease to date for the session additionally, however exhibiting some life now.

This text was written by Aaron Cutchburt at investinglive.com.