Advanced Micro Devices (NASDAQ:AMD) surpassed second quarter 2024 estimates due in part to record Data Center segment revenue as the semiconductor company released it latest financial results after markets closed on Tuesday.
Second quarter revenue of $5.84B beat the consensus estimate by $120M, while non-GAAP earnings per share of $0.69 slightly eclipsed the estimate of $0.68.
“We delivered strong revenue and earnings growth in the second quarter, driven by record Data Center segment revenue,” said AMD CEO Lisa Su. “Our AI business continued accelerating, and we are well positioned to deliver strong revenue growth in the second half of the year, led by demand for Instinct, EPYC and Ryzen processors.”
She also said generative artificial intelligence is driving demand across markets and creating more growth opportunities.
AMD stock shot up nearly 6% during early post-market trading on Tuesday after the results were released.
Curious market behavior today. After AMD’s results last night:
AMD up $6.04, up 4.36% during day, 0.66% after hours.
NVDA up $13.29, up 12.81% during day, 2.82% after hours.
Is AMD the new market leader which NVDA has to follow and exaggerate the rise, as if it’s geared enormously (debtwise)?
Or is NVDA determined to be the party pooper and steal AMD’s thunder whenever it can, perhaps by shorting AMD?
I don’t know but the second explanation looks more likely to me.
Nvidia has been down from its high of 140 after the split. Seems to have established a new support level at 104. Painful to watch it fall that much but pretty good buying opportunity for those who want in. Still likely to report nice earnings end of August.
As to competition vs AMD (or others) your guess is as good as mine. Nvidia has 80% share they say. Everybody else is trying to be good competitors especially while Nvidia chips are sold out. We shall see who makes it work. News that Apple choose Google chips for its AI project seems to give them a leg up.
Yes Nvidia has had a huge fall and clawed back a lot of it since 30th July and especially yesterday. Good for them but why did it happen on the day after AMD earnings? I said earlier in another thread I sold out of NVDA but did not mention getting back in on 29th July. I made a small profit from the sale and repurchase. I’m not an NVDA hater.