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.
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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.