AMD posts 2Q revenues up 26% on notebook, server processors

amd hq
AMD had a strong quarter in terms of revenues, up 26% over a year ago. Its stock keeps growing, up 30% in July. (AMD)

Notebook and server processor sales boosted AMD’s second quarter revenues to $1.93 billion, up 26% over the same period last year, the chipmaker announced Tuesday.

CEO Lisa Su said Ryzen and EPYC chip revenue more than doubled from a year ago. Net income reached $173 million for the quarter. 

Data center products accounted for 20% of second quarter revenues, while the company reached record notebook processor revenues.  There are now 54 Ryzen-powered notebook models in the market, Su said.

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Despite some economic uncertainty, Su said the company has also raised its full-year revenue outlook and now expects a 32% increase compared to 2019 based on strength in PC, gaming and data center chips.

Revenue for Q2 was nearly at the top of AMD’s earlier guidance and above the consensus estimate of analysts.  AMD’s stock has grown 30% in the past month and 50% over the year, and has far outperformed Intel, which last week announced a delay in production of 7nm chips.

RELATED: Intel engineering head to depart after product delay; stock falls 16%

AMD’s stock was $67.61 at market close, but after-hours trading boosted it by nearly 10% to $74.

The company’s computing and graphics segment revenue was $1.37 billion, up 45% over a year ago.  Enterprise, embedded and semi-custom revenue was $565 million, down by 4% year over year. The decline was due to lower semi-custom product sales, but they were offset by higher EPYC processor sales.

AMD recently enlarged its desktop processor portfolio with a third generation AMD Ryzen 3000XT series desktop processor, good for gaming and content creation.

Data center adoption of second-generation AMD EPYC processors accelerated in the second quarter, with deals announced with Google, Amazon Web Services and Oracle. Dell, HPE, IBM Cloud and others also announced EPYC-based products.

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