Advanced Micro Devices reported second-quarter adjusted earnings per share of $1.66, above the consensus estimate of $1.62, and raised third-quarter revenue guidance to a range of $12.70 billion to $13.30 billion, above the Street's forecast of $12.51 billion.
Revenue for the quarter reached $11.54 billion versus the consensus estimate of $11.31 billion. Adjusted operating income came in at $3.09 billion against an estimate of $3.01 billion, yielding an adjusted operating margin of 27.0 percent compared to the expected 26.9 percent.
Research and development expenses totaled $2.53 billion, exceeding the estimated $2.45 billion. Capital expenditures reached $808 million, significantly higher than the estimate of $298.6 million. The company did not provide a specific reason for the capex figure in the announcement.
AMD's third-quarter guidance implies midpoint revenue of $13.0 billion, representing sequential growth of roughly 13 percent from the second quarter and roughly 25 percent year-over-year at the midpoint based on the second-quarter baseline.
The earnings results come as semiconductor stocks have faced volatility in recent months amid shifting expectations around artificial intelligence infrastructure spending and broader tech sector valuations. AMD competes directly with Nvidia in data-center processors and serves customers across cloud computing, consumer, and enterprise segments.
The third-quarter guidance midpoint of $13.0 billion would exceed AMD's second-quarter result by roughly $1.46 billion, or 13 percent quarter-over-quarter. The company's capex run-rate of $808 million in a single quarter annualizes to roughly $3.2 billion, a level the company has not sustained historically.
If AMD does not meet its raised third-quarter revenue guidance by the time it reports October results, investors will learn whether the company's confidence in near-term demand has shifted.
