AMD Pops on Earnings Beat and Strong Outlook

AMD beat on earnings and revenue, and boosted its expectations for revenue growth in 2020.
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Shares of chip maker Advanced Micro Devices  (AMD) - Get Report popped after hours Tuesday after the company reported second quarter results that topped expectations for the period, and also issued a stronger-than-expected outlook for the rest of the year.

TheStreet's Eric Jhonsa is live blogging AMD's earnings and call with analysts. Please join us! 

AMD reported earnings of 18 cents per share and a 26% year over year increase in revenue to $1.94 billion. Analysts were expecting the company to report non-GAAP earnings of 16 cents per share on revenue of $1.86 billion. 

CEO Dr. Lisa Su also said that despite some "macroeconomic uncertainty" the company expects its full year revenue to grow 32% year-over-year, compared to prior guidance for 25% growth, plus or minus 5%. This increase was driven primarily by Ryzen and EPYC processor sales.

For the third quarter, AMD expects revenue to be between $2.45 billion and $2.65 billion, compared to analyst expectations of $2.32 billion. 

AMD shares were up 9.4% to $73.95 in after hours trading on Tuesday. 

During the second quarter, revenue for the computing and graphics segment jumped 45% year over year to $1.37 billion, but was down 5% sequentially. 

AMD shares have benefited recently after rival Intel  (INTC) - Get Report said that its next-generation 7nm process node production is trending about a year behind the company's internal target, leading to a launch delay of about six months. 

AMD is now seen to have an edge with its use of TSMC's 7nm process for its current Zen 2 CPUs and upcoming Zen 3 CPUs.

AMD is scheduled to hold its conference call at 5 PM ET Tuesday with some key elements to watch for being the production schedule for Microsoft’s new Xbox Series X and Sony’s PlayStation 5; indications about desktop and notebook CPU demand, as well as for PC and data center GPU; and AMD’s commentary about its future CPUs and GPUs, including its first Zen3-based offerings.

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