Advanced Micro Devices Inc (NASDAQ:AMD) shares rose more than 5% after-hours following the company’s reported Q2 results, with EPS of $0.58 coming in better than the consensus estimate of $0.57. Revenue fell 18% year-over-year to $5.4 billion, beating the consensus estimate of $5.32B.
Data Center segment revenue was down 11% year-over-year to $1.3B, mainly attributed to lower sales of the 3rd Gen EPYC processor, as there was lower demand from Enterprise customers and Cloud inventory levels were elevated at some customers. Client segment revenue fell 54% year-over-year to $998 million, primarily caused by a decrease in processor shipments due to a weaker PC market and a significant inventory correction across the PC supply chain.
Gaming segment revenue was $1.6B, down 4% year-over-year, while embedded segment revenue was $1.5B, up 16% year-over-year.
“Our AI engagements increased by more than seven times in the quarter as multiple customers initiated or expanded programs supporting future deployments of Instinct accelerators at scale,” said CEO Lisa Su.
The company expects Q3/23 revenue in the range of $5.4-$6B, compared to the consensus estimate of $5.82B.