Advanced Micro Devices NASDAQ:AMD fell 7.89% premarket despite reporting second-quarter revenue up 50% to a record $11.5 billion, ahead of the $11.31 billion analysts expected, with non-GAAP earnings of $1.66 a share against a $1.62 consensus. GAAP diluted earnings were $1.38.
Data center revenue rose 107% to $6.7 billion and segment operating income reached $2.1 billion against a $155 million loss a year earlier, taking the segment to 58% of company revenue. Client revenue grew 23% to $3.1 billion, though gaming fell 31% to $779 million on lower semi-custom revenue. Embedded rose 19% to $977 million.
Non-GAAP gross margin was 56% and non-GAAP operating margin 27%, up from 12%. Free cash flow came in at $1.56 billion, a 14% margin against 25% in the first quarter, as capital expenditure more than doubled sequentially to $808 million.
AMD guided third-quarter revenue to about $13 billion give or take $300 million, implying 41% growth, with non-GAAP gross margin of roughly 56%.
AMD went into the print up more than 135% this year, having closed 7% higher the previous session.