AMD (AMD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $5.8 billion, up 9% year-over-year, driven by record Data Center and strong Client segment growth, partially offset by declines in Gaming and Embedded segments.

• Data Center segment revenue hit a record $2.8 billion, up 115% year-over-year, fueled by Instinct GPU and EPYC CPU demand.

• Non-GAAP EPS rose 19% to $0.69; GAAP EPS was $0.16, reflecting higher revenue and improved gross margin.

• Gross margin expanded to 49% GAAP and 53% non-GAAP, reflecting improved product mix and operational execution.

• AI business momentum accelerated, positioning for strong growth in the second half of 2024.

Financial highlights

• Revenue: $5.8 billion, up 9% year-over-year and 7% sequentially.

• GAAP gross margin: 49% (up 3 points year-over-year); non-GAAP gross margin: 53%.

• GAAP operating income: $269 million (up from a $20 million loss in Q2 2023); non-GAAP operating income: $1.3 billion, up 18% year-over-year.

• Free cash flow: $439 million; cash and short-term investments totaled $5.3 billion at quarter end.

• Diluted EPS: $0.16 GAAP (up 700% year-over-year); $0.69 non-GAAP (up 19%).

Outlook and guidance

• Q3 2024 revenue expected at ~$6.7 billion (±$300 million), up 16% year-over-year and 15% sequentially.

• Non-GAAP gross margin forecasted at 53.5%; operating expenses at $1.9 billion; effective tax rate at 13%.

• Data Center and Client segments to drive growth; Gaming to decline double digits, Embedded to rise.

• Data Center GPU revenue for 2024 now expected to exceed $4.5 billion, up from prior $4 billion guidance.

• Diluted share count projected at ~1.64 billion for Q3 2024.