AMD Q1 2022 Earnings Report Recap

AMD crushed earnings expectations

Key Takeaways

  • Revenue for AMD's Enterprise, Embedded and Semi-Custom segment came in above expectations.
  • The Enterprise, Embedded and Semi-Custom segment has been growing much faster than the company's other main segment as processing chips are being embedded in more and more products.
  • AMD expects revenue to grow approximately 69% year over year in Q2 FY 2022.
AMD Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Earnings Per Share Beat $1.13 $0.91
Revenue Beat $5.9B  $5.2B
Enterprise, Embedded and Semi-Custom Segment Revenue Beat $2.5B $2.3B

Source: Predictions based on analysts' consensus from Visible Alpha

Advanced Micro Devices (AMD) Financial Results: Analysis

Advanced Micro Devices, Inc. (AMD) reported Q1 FY 2022 earnings that solidly beat consensus estimates. Earnings per share (EPS) surpassed expectations, more than doubling year over year (YOY) to reach $1.13 for the quarter. Revenue shot up by 71% YOY to a quarterly record of $5.9 billion, also easily clearing analyst predictions. Excluding AMD's recently completed purchase of semiconductor company Xilinx, revenue climbed by a still-sizable 55% YOY.

AMD Enterprise, Embedded and Semi-Custom Revenue

AMD's Enterprise, Embedded and Semi-Custom segment saw record revenue of $2.5 billion, also beating analyst predictions. This represents growth of 88% YOY. The segment encompasses server and embedded processors, semi-custom System-on-Chip (SoC) products, development services, and game console technology. It does not include AMD's desktop and notebook microprocessors, which are included in the company's Computing and Graphics segment. The Enterprise, Embedded and Semi-Custom segment is the smaller of the company's two main segments, but it is growing at a rapid clip and could ultimately overtake the Computing and Graphics segment as AMD's primary revenue generator.

Demand has risen sharply in recent years for the types of chips that AMD's Enterprise, Embedded and Semi-Custom segment offers, because of the pandemic and changing work habits as well as due to the ongoing global chip shortage. Online traffic has surged because of people working and studying from home, causing a need for greater data center server capacity.

AMD Outlook and Stock Performance

In its earnings release, AMD announced that it expects revenue for Q2 FY 2022 to be between $6.3 billion and $6.7 billion, which would represent an increase of about 69% YOY. The company expects FY 2022 revenue to be roughly $26.3 billion, constituting YOY growth of 60%.

AMD stock was up about 3.6% in extended trading hours following the earnings release, as of this writing. Over the past year, AMD's shares have provided a total return of 16.0%, well above the S&P 500's total return of -0.4%.

AMD's next earnings report (for Q2 FY 2022) is expected to be released on July 26, 2022.

Article Sources
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  2. Visible Alpha. "Financial Data."

  3. Advanced Micro Devices Inc. "Form 10-K for the Fiscal Year Ended December 25, 2021," Page 73.

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