The company met analyst estimates for earnings per share and beat revenue expectations. AMD reported earnings of 8 cents per share and revenue of $1.53 billion, compared to estimates of $1.52 billion, according to Refinitiv. AMD revenue was down 13% compared to the same quarter last year, although it is up 20% from the previous quarter.
AMD has still seen huge success over the past year, remaining the second-best performing stock on the PHLX Semiconductor index over the past 12 months. AMD shares have risen 66.1% over the period, falling behind Inphi Corporation on the index.
AMD said revenue was lower in both its computing and graphics and enterprise, embedded and semi-custom segments. Computing and graphics revenue was down 13% year over year at $940 million. The company blamed decline in the segment's revenue on lower graphics channels sales, but said its 13% increase from the last quarter was mainly due to higher GPU sales.
Revenue for AMD's enterprise, embedded and semi-custom segment was also down 12% year over year at $591 million for the quarter. AMD said the segment's dip was mainly due to lower semi-custom product revenue but that its 34% increase from last quarter was due to higher semi-customer and EPYC processor sales.
AMD provided revenue guidance of $1.8 billion for the third quarter, plus or minus $50 million, lower than analyst estimates of about $1.95 billion.
In an interview on CNBC's "Squawk on the Street," AMD CEO Lisa Su said changes in the gaming market impacted its lowered revenue guidance.
"As we look forward in the year, yes we did revise guidance a little bit downward due to game consoles," Su said. "And if you think about it, game consoles are a great overall market, however Microsoft and Sony just announced their new consoles just here a couple months ago and that's caused a little bit of a pause in demand. But if you look at overall, I think we feel really really good about the markets and particularly about our new products."
Su said the trade situation in China is "fluid" and AMD is closely watching it along with the rest of the semiconductor industry.
"We have stopped shipping some products to a couple of our customers that are on the U.S. entities list and that is a little bit of a headwind into the second half of the year, but we have great products that are backstopping some of that and so we feel really good about the growth prospects into the second half," Su said.
For its full year 2019, AMD provided guidance of a mid-single digit percent increase in revenue compared to 2018, where it reported revenue of $6.48 billion. AMD expects the growth of its new Ryzen, EPYC and Radeon processors to fuel its growth for the year.