AMD Stock Surges in After-Hours Trading on Strong Q2 Earnings Beat and Raised Guidance
In a stunning after-hours session, AMD’s stock soared by 2.6% following the release of their second-quarter earnings report that surpassed expectations and their optimistic full-year revenue forecast.
The company reported a remarkable increase in net income, more than doubling to $265 million, or 16 cents per share, compared to $123 million, or 7 cents per share, from the same period last year. Adjusted earnings per share also rose to 69 cents from 58 cents, beating the FactSet consensus of 68 cents per share.
Revenue saw a solid growth of 8.9% to $5.84 billion, exceeding the FactSet consensus of $5.72 billion. Data center revenue reached a record high of $2.8 billion, surpassing expectations, while client segment revenue also saw a significant increase. However, gaming revenue experienced a decline of 59%.
Looking forward, AMD anticipates third-quarter revenue of $6.7 billion, with a margin of $300 million, compared to the current FactSet consensus of $6.61 billion.
Although the stock closed the regular session slightly down, it has experienced a 14.7% drop this month, marking its worst monthly performance since December 2022.
In conclusion, AMD’s impressive earnings report and raised guidance have sparked a positive reaction in the market, leading to a surge in stock price. This indicates strong performance and growth potential for the company, making it an attractive investment opportunity for investors looking to capitalize on the booming semiconductor and artificial intelligence industries.