How Good Were AMD's Earnings?
The semiconductor market has recently been free-falling due to fears of consumer spending decreasing. Some investors have argued that enterprise spending will be able to offset some of the headwinds in the consumer market. Today's video offers some insight, focusing on the recent earnings for Advanced Micro Devices (NASDAQ: AMD). Here are some highlights.
- On May 3, AMD reported its first-quarter results, causing the stock price to jump over 5% after hours. The company reported 71% year over year (YoY) revenue growth thanks to its recent acquisition of Xilinx. Excluding the acquisition, AMD would have grown revenue at 55% YoY.
- AMD's computing and graphics segment was up 33% YoY, driven by the strength of its consumer products. The enterprise, embedded, and semi-custom segment also saw a strong growth of 88% YoY as cloud providers continue to heavily adopt its server processors.
- AMD also increased its guidance following the acquisition. For the second quarter, AMD expects to grow 69% YoY and 60% for the full year of 2022. Investors should keep an eye on share dilution after the recent acquisition, which is a topic I discuss in the video.
*Stock prices used were the closing prices of May 3, 2022. The video was published on May 3, 2022. 10 stocks we like better than Advanced Micro Devices They just revealed what they believe are the ten best stocks for investors to buy right now... and Advanced Micro Devices wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of April 7, 2022
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Jose Najarro has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
