AMD surges 12% after trouncing quarterly estimates and snagging market share from rivals
- Advanced Micro Devices beat second-quarter estimates and forecasted better-than-expected sales when it reported earnings Tuesday afternoon.
- Notebook and server processor sales fueled a quarterly profit of $157 million, CEO Lisa Su said in the report.
- AMD launched 11.6% higher in early Wednesday trading.
- The semiconductor company recently narrowed its gap with Intel after the rival firm announced its next generation of processors would be delayed.
- Watch AMD trade live here.
Advanced Micro Devices reported earnings after markets closed on Tuesday that handily beat analyst expectations and extended the chipmaker's winning streak against rivals.
Notebook and server processor sales drove a second-quarter windfall of $157 million, CEO Lisa Su said in Tuesday's report. The company also boosted its current-quarter forecast above analyst expectations. Though AMD faces a tight supply of its top processors, Su said she is confident the company can match strong demand.
AMD shares leaped as much as 11.6% in early Wednesday trading.
Here are the key numbers:
Revenue: $1.93 billion, versus the $1.86 billion estimate
Earnings: 16 cents per share, versus the 18 cents estimate
Third-quarter revenue guidance: $2.55 billion, versus the $2.3 billion estimate
"I am very proud of the progress we have made over the last few years, placing AMD on a long-term growth trajectory," Su said in a call with analysts, according to a Sentieo transcript. "I'm even more excited about the opportunities in front of us as we enter our next phase of growth driven by accelerating our business in multiple markets."
The company's server and mobile processor businesses rallied through the quarter, leading its Ryzen and EPYC processor sales to more than double from the year-ago period. AMD also met its goal of double-digit server processor market share after its data center chips made up more than 20% of second-quarter revenue.
The chip manufacturer sees its winning streak with notebook sales continuing through the rest of the year, Su said. The second quarter saw AMD notch its largest PC processor revenue in more than 12 years. Growth was mostly fueled by the company's 11th-straight quarter of market share gains, Su added.
AMD already boosted its standing with investors last week after Intel announced delays to its 7-nanometer processors. The semiconductor company already produces 7-nm chips, which use smaller and more power-efficient transistors compared to larger manufacturing processes. AMD stock leaped as much as 17% on the news as investors mulled whether Intel's market share could be under threat.
AMD closed at $67.61 per share on Tuesday, up 49% year-to-date.
Now read more markets coverage from Markets Insider and Business Insider:
Bernstein downgrades Tesla and says the stock will tank 42% from its 'mind-boggling' valuation
An expert shares how to get started in real-estate investing and bring in passive income
