AMD Q2 data center revenue up 107%

AMD reported better-than-expected second quarter results with data center unit revenue growth of 107% from a year ago.

The company reported second quarter net income of $2.3 billion, or $1.38 a share, on revenue of $11.54 billion, up 50% from a year ago. Non-GAAP earnings for the second quarter were $1.66 a share.

Wall Street was expecting AMD to report non-GAAP earnings of $1.61 a share on revenue of $11.31 billion.

AMD CEO Lisa Su said the company enters the second half "with strong momentum as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp."

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CFO Jean Hu data center sales are expected to accelerate in the second half.

By the numbers:

• AMD reported data center revenue of $6.7 billion, up 107% from a year ago. Data center sales represent 58% of revenue.
• Client and gaming revenue was $3.8 billion, up 6% from a year ago. PC revenue was $3.1 billion, up 23% from a year ago. Gaming revenue was $779 million, down 31% from a year ago.
• Embedded revenue was $977 million, up 19% from a year ago.
• AMD ended the quarter with $13.11 billion in cash and equivalents.

As for the outlook, AMD said it is expecting third quarter revenue of about $13 billion, give or take $300 million. That outlook topped estimates.