AMD, AI Data Center and PC Processors 'Sprint' Together... 48% Revenue Surge Expected

▲ AMD/AI-generated image

AMD is approaching its earnings announcement, spearheaded by two growth pillars: AI data centers and PC processors. Market attention is focused on how much more it can accelerate its growth rate rather than just revenue increase.

According to MarketWatch on August 3 (local time), AMD will announce its second-quarter earnings after market close on the 4th. The market expects Q2 revenue to be approximately $11.34 billion, an increase of about 48% compared to the same period last year. The adjusted earnings per share (EPS) forecast is $1.61, more than three times higher than $0.48 in the same period last year.

The first growth pillar is the data center business. AMD's Q1 data center revenue increased by 57% to $5.775 billion. Demand for EPYC server CPUs and Instinct AI accelerators drove this growth. AMD expects server CPU revenue in Q2 to increase by over 70% compared to the same period last year.

The second growth pillar is the PC processor business. Q1 client business revenue increased by 26% to $2.885 billion. Sales of Ryzen processors and expanding market share boosted performance. It is evaluated that if the demand for PC replacement with AI features continues, it can complement the growth structure concentrated in data centers.

AMD's previously provided Q2 revenue outlook is in the range of $11.2 billion, plus or minus $300 million. The non-GAAP gross margin forecast is approximately 56%. Investors are closely watching the supply schedule for the next-generation MI450 accelerator and Helios systems, as well as the adoption scale by major customers, along with the earnings figures.

AMD's stock price has more than doubled this year but has fallen about 19% from its June high. Although both the data center and PC businesses are growing simultaneously, if the heightened expectations are not met, volatility could increase after the earnings announcement. The options market is also preparing for significant stock price movements around the earnings.

[Article Key Summary]

-AMD's Q2 revenue is expected to be $11.34 billion, an increase of approximately 48% compared to the same period last year.

-The data center and PC processor businesses are considered the two core pillars driving AMD's performance growth.

-In the market, the MI450 and Helios supply schedule, along with the growth trend of server CPUs, are drawing attention as key variables for the earnings announcement.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*