AMD Q1 2022 Earnings: $5.9 Billion Revenue and 71% Growth Surpass Expectations

AMD delivered an outstanding Q1 2022 earnings performance, exceeding all analyst forecasts with remarkable growth across key segments.

Highlights

• The Enterprise, Embedded, and Semi-Custom segment posted revenue of $2.5 billion, surpassing estimates by a significant margin.
• This segment experienced an 88% year-over-year surge, driven by increasing integration of processing chips in diverse products.
• AMD projects Q2 FY 2022 revenue growth of approximately 69% year-over-year, signaling continued momentum.

Source: Analyst consensus data from Visible Alpha

In-Depth Financial Analysis of Advanced Micro Devices (AMD)

Advanced Micro Devices, Inc. (AMD) reported first-quarter fiscal 2022 earnings that significantly outpaced market expectations. Earnings per share (EPS) soared to $1.13, more than doubling compared to the same period last year. Quarterly revenue reached a record-breaking $5.9 billion, marking a 71% increase year-over-year and comfortably exceeding analyst predictions. Even when excluding the recent acquisition of semiconductor firm Xilinx, revenue growth remained robust at 55% year-over-year.

Enterprise, Embedded, and Semi-Custom Segment Performance

The Enterprise, Embedded, and Semi-Custom division achieved a historic revenue milestone of $2.5 billion, reflecting an 88% increase from the previous year. This segment includes server and embedded processors, semi-custom System-on-Chip (SoC) solutions, development services, and gaming console technologies. While smaller than AMD's Computing and Graphics segment, this division is expanding rapidly and may soon become the company's leading revenue contributor.

Heightened demand for these specialized chips is fueled by pandemic-driven shifts such as remote work and education, alongside the global semiconductor shortage. Increased online activity has escalated the need for enhanced data center server capacity, benefiting AMD's Enterprise, Embedded, and Semi-Custom segment.

Future Outlook and Market Impact

AMD forecasts second-quarter FY 2022 revenue between $6.3 billion and $6.7 billion, representing approximately 69% growth year-over-year. For the full fiscal year 2022, the company anticipates revenue near $26.3 billion, a 60% increase compared to 2021.

Following the earnings announcement, AMD's stock price rose approximately 3.6% in after-hours trading. Over the last year, AMD shares have delivered a total return of 16.0%, outperforming the S&P 500's -0.4% return.

Investors can expect AMD's next quarterly earnings report, covering Q2 FY 2022, on July 26, 2022.

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