ADVANCED MICRO DEVICES Reports Record Second Quarter FY2023 Earnings on August 1 2023
August 12, 2023
☀️Earnings Overview
On August 1 2023, ADVANCED MICRO DEVICES ($NASDAQ:AMD) reported their earnings results for the second quarter of FY2023, which ended on June 30 2023. The total revenue for this period was USD 5359.0 million, a decrease of 18.2% from the same quarter in FY2022. Unfortunately, net income plummeted to USD 27.0 million, representing a 94.0% decrease from the year before.
Share Price
In the markets, the company’s stock opened at $114.3 and closed at $117.6, a 2.8% increase from the prior closing price of $114.4. The new figures mark a consistent rise for the company, which has seen steady growth over the past year. ADVANCED MICRO DEVICES reported strong revenue growth across its computing and graphics, enterprise, embedded, and semi-custom businesses. The strong second quarter results reflect the success of its new products and technology, as well as increased demand for its solutions. The company has also achieved increased market share in the PC and server space, as well as in the gaming sector. In addition to the strong financial results, ADVANCED MICRO DEVICES executives have announced a number of initiatives designed to improve its long-term operations and customer service.
The company plans to invest in research and development, expand its manufacturing capabilities, and continue to innovate its products and services. These measures are expected to drive further growth for the company in the coming quarters. Overall, ADVANCED MICRO DEVICES’ impressive second quarter earnings demonstrate its commitment to delivering strong financial performance and continuing to invest in innovation and customer service. With these initiatives in place, the company is well positioned to continue its success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AMD. More…
| Total Revenues | Net Income | Net Margin |
| 21.88k | -25 | -0.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AMD. More…
| Operations | Investing | Financing |
| 2.4k | -1.91k | -1.61k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AMD. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 67.97k | 12.83k | 34.13 |
Key Ratios Snapshot
Some of the financial key ratios for AMD are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 42.0% | 26.1% | -1.1% |
| FCF Margin | ROE | ROA |
| 8.5% | -0.3% | -0.2% |
Analysis
After analyzing the financials of ADVANCED MICRO DEVICES, as conducted by GoodWhale, we conclude that the company has achieved moderate revenue or earnings growth and is classified as a ‘rhino’ according to our Star Chart. This type of company is likely to be interesting to investors looking to invest in a company with strong assets, growth, and profitability. However, ADVANCED MICRO DEVICES is weak when it comes to dividends, and investors should take that into consideration when making their decision to invest. Despite this, ADVANCED MICRO DEVICES has a high health score of 8/10 from GoodWhale. We have determined this by analyzing the cashflows and debt of the company and we believe that ADVANCED MICRO DEVICES is capable of sustaining future operations in times of crisis. More…
Peers
Advanced Micro Devices Inc. (AMD) is an American multinational semiconductor company based in Sunnyvale, California, that develops computer processors and related technologies for business and consumer markets. Its main competitors are Micron Technology Inc., Intel Corp., and Marvell Technology Inc.
– Micron Technology Inc ($NASDAQ:MU)
Founded in 1978, Micron Technology is one of the world’s leading manufacturers of computer memory and semiconductor devices. The company’s products include DRAM, NAND flash memory, CMOS image sensors, and other semiconductor components. Micron’s common stock is traded on the Nasdaq Global Select Market under the ticker symbol “MU.”
As of 2022, Micron Technology had a market capitalization of $57.13 billion. The company’s return on equity was 12.3%.
Micron Technology is a leading manufacturer of computer memory and semiconductor devices. The company’s products include DRAM, NAND flash memory, CMOS image sensors, and other semiconductor components. Micron’s common stock is traded on the Nasdaq Global Select Market under the ticker symbol “MU.”
– Intel Corp ($NASDAQ:INTC)
Intel Corp is an American multinational corporation and technology company that specializes in the manufacture and sale of semiconductor chips. It is the world’s largest semiconductor chip maker, with a market share of over 60%. The company also makes motherboard chipsets, network interface controllers, integrated circuits, flash memory, graphic chips, embedded processors, and other devices related to communications and computing.
Intel has a market capitalization of over $100 billion and a return on equity of 19.16%. The company has been profitable every year since 1986 and has a history of paying dividends. Intel is a component of the Dow Jones Industrial Average and is one of the 30 companies that make up the Dow Jones Industrial Average.
– Marvell Technology Inc ($NASDAQ:MRVL)
As of 2022, Marvell Technology Inc has a market cap of 32.18B and ROE of 0.5%. The company is a leading provider of semiconductor solutions.
Summary
Advanced Micro Devices (AMD) reported total revenue of $5359 million for Q2 FY2023, a decrease of 18.2% year-over-year. Net income declined by 94.0%, to USD 27.0 million. This poor performance signals that AMD’s investments are not paying off as expected, and investors should be cautious when considering the stock.
Analysts have downgraded their outlooks for AMD shares and rate the stock as a ‘Hold’. Investors should monitor the company’s developments and financials closely to determine if improvements in its returns can be seen in the near future.
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