US chip giant $Advanced Micro Devices (AMD.US)$announced optimistic Q2 results this morning.

Stimulated by this financial report, AMD and other semiconductors soared more than 8% on Wednesday, driving the overall strength of the market with others rising more than 6%.$NVIDIA (NVDA.US)$$Arm Holdings (ARM.US)$rose 7%, $Taiwan Semiconductor (TSM.US)$rose more than 5%.$Broadcom (AVGO.US)$,$Micron Technology (MU.US)$

In terms of overall performance, AMD achieved revenue of USD 5.835 billion in the second quarter, a year-on-year increase of 8.9%; net income was USD 0.265 billion, a year-on-year increase of 881%, and a quarter-on-quarter growth of 115%.

In terms of segmented business, the datacenter business is still the main source of growth. This quarter, the datacenter achieved revenue of USD 2.8 billion, a year-on-year doubling, accounting for nearly 50% of the total revenue. The client business unit's revenue accounted for about 1/4, and the remaining two business units accounted for a further decline.

1. Datacenter

AMD's datacenter business achieved revenue of USD 2.834 billion in the second quarter, a year-on-year increase of 114.5%, mainly due to the strong demand for the AI accelerator MI300. It is worth noting that the revenue of the datacenter business unit has hit a historical high for two consecutive quarters, with a year-on-year increase of 80% in the previous quarter.

As AMD's flagship product competing with NVIDIA's H100, MI300 achieved sales of over $1 billion in a single quarter, far exceeding market expectations.

It is worth noting that with the further increase in capital expenditure by major factories, the company's datacenter business will continue to benefit. Microsoft and Google's capital expenditures continued to rise this quarter, especially Microsoft's capital expenditures increased by 36% from the previous quarter. At the same time, the company has also raised its datacenter GPU sales target to USD 4.5 billion this year.

2. Client business unit

AMD's client business unit achieved revenue of USD 1.492 billion in the second quarter, a year-on-year increase of 49.5%. This is mainly due to the sales of Ryzen processors, with a year-on-year increase of 49% in Ryzen CPU sales, and the sales of Radeon 6000 GPUs also achieved year-on-year growth.

3. Gaming business

AMD's gaming business achieved revenue of USD 0.648 billion in the second quarter, a year-on-year decrease of 59%. The halving of game department revenue year-on-year is due to the decrease in semi-custom revenue.

4. Embedded business

AMD's embedded business achieved revenue of USD 0.861 billion in the second quarter, a year-on-year decrease of 41%. The company's embedded business is mainly based on the previously acquired Xilinx. This quarter is mainly affected by customer inventory adjustments, and the company's shipments have remained relatively low.

Overnight, the volume of AMD options trading nearly doubled. Based on the options chain, the bulls ambush call options ahead of time. The multiple call options with high trading volume are within the exercise price range of 150-175 USD.

Mooers,

AI is the growth engine for AMD,

Has this company's optimistic financial report driven a rebound in chip stocks?

Feel free to leave your thoughts in the comments section~

Editor/Somer