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AMD EPYC processors
Courtesy of AMD.
Advanced Micro Devices gave investors reason to cheer on Tuesday when it reported earnings that exceeded expectations and said it would sell more chips at a higher profit than anticipated.
Shares of AMD (ticker: AMD) rebounded in the extended session, advancing nearly 10% after the earnings release.
AMD, the smallest rival to Intel computing (INTC), said its personal computer and server chips would produce more revenue by a broader margin than previously thought amid the Covid-19 pandemic. Its custom chip unit would also contribute more substantially to revenue, suggesting that the next generation of video game consoles, likely to launch in the fall, will continue to increase the company’s revenue.
AMD exceeded investor expectations for the second quarter that closed in June, reporting a net income of $ 157 million, amounting to 13 cents a share, compared to a profit of $ 35 million, or 3 cents a share, ago. one year. Adjusted for stock compensation, AMD reported earnings of 18 cents per share. The company recorded total revenue of $ 1.93 billion.
Wall Street had expected adjusted earnings of 16 cents a share on sales of $ 1.86 billion.
“We delivered strong results in the second quarter, led by record sales of notebooks and server processors as Ryzen and Epyc revenues doubled from the previous year,” said AMD CEO Lisa Su. “Despite some macroeconomic uncertainty, we are increasing our full-year revenue outlook as we enter our next phase of growth driven by the acceleration of our business in multiple markets.”
AMD said it now expects third-quarter sales of $ 2.45 billion to $ 2.65 billion. Sales side analysts had previously forecast third-quarter sales of $ 2.31 billion.
AMD’s shares have benefited from Intel’s revelation last week that it delayed its seven-nanometer manufacturing process by another six months and benefited from yet another increase after AMD announced a new line of chips. AMD shares were up 35% this month as the S&P 500 index gained 5.4%. The PHLX semiconductor index advanced 6% in the past month.
Corrections and amplifications: AMD reported earnings of $ 35 million, or 3 cents a share, in the quarter ending June 2019. An earlier version of this article incorrectly reported the net income and earnings per share figure for the same period last year.
Write to Max A. Cherney at [email protected]
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