AMD has a record quarter again, but the prospects aren't very good

AMD has a record quarter again, but the prospects aren't very good

AMD reported on its performance in the second quarter of 2022; the company returned to record revenue and predicted further growth; however, the company's profits have fallen markedly, and growth rates have slowed; the server segment and the built-in solutions showed a large increase, while the sales of the video cards have fallen.

The company reported revenue in the second quarter of $6.55 billion, which is 70 percent more than a year ago, despite the fact that the company's revenue is growing for the eighth quarter in a row, the Intel's income is still a long way away; it's 2.3 times higher.

The operating surplus, calculated according to generally accepted accounting principles, was $526 million, and the net profit was $447 million. Compared to the second quarter of last year, these figures fell by 37% each. The return per share fell by 53% to the level of $0.27.

The sales of processors for PCs brought AMD $2.2 billion in the second quarter, an increase of 25 per cent by the year, despite the fall in the market, and success was due to the increase in mobile Ryzen sales and the increase in their average price.

The loan in the game segment grew by 32% to $1.7 billion, but this success is related solely to the increase in chip sales for Xbox and PlayStation, mostly in the last generation.

The server line earned $1.5 billion, the year's growth was 83%, and the distribution of Epyc at the data centres is increasing. The built-in and networked chips have brought the AMD $1.3 billion, and the revenue in this direction has increased by a few orders of magnitude, thanks to the successful acquisition of Hilinx.

AMD predicted a further increase in revenue in the current quarter to $6.7 billion, which is below the expectations of analysts and means a slowdown in growth.