Shares of AMD (AMD) - Get Report were up about 1% to $13.00 after hours on Thursday after the chipmaker beat earnings and sales estimates for the fourth quarter. After falling 3.4% during the day's trading, AMD shares alternated between rising and falling after hours.

AMD reported adjusted earnings of $0.08 per share vs. $0.05 per share expected on revenues of $1.48 billion vs $1.41 billion expected. Shares have risen more than 25% year to date, after a weak 2017 when its shares fell 9%.

Here are the six biggest takeaways from AMD's earnings report (the company hosts an earnings call at 5 p.m. ET)

    AMD is switching to a new accounting standard that, if used in 2017, would have resulted in Q4 sales being lower by $140 million, and below consensus estimates relying on the old accounting standard.

    At the same time, based on the new standard, AMD's Q1 revenue guidance is at $1.55 billion (+/- $50 million), which is well above a $1.25 billion consensus that relied on the old standard. Analysts might press the company on the earnings call to share more details about the impact of the accounting change.

    Based on the old accounting rules, Q4 revenue and EPS were above consensus. The upside was entirely driven by AMD's Computing & Graphics (PC CPU and GPU) segment, whose revenue rose 60% year-over-year to $958 million on the back of desktop CPU share gains against Intel and solid GPU demand. The segment's sales were well above an $863 million consensus estimate. Both cryptocurrency miners and Apple design wins lifted GPU sales.

    AMD's Enterprise, Embedded & Semi-Custom segment saw revenue of $522 million, up 3% year-over-year, but below a $535 million consensus estimate. Lower-than-expected console processor sales appear to be the culprit.

    With the help of higher PC CPU and GPU average selling prices (ASPs), gross margin grew by 3 percentage points annually to 35%, and was in-line with guidance. AMD expects gross margins to tick higher to 36% in Q1.

    After years of cutting costs in response to declining sales, AMD is comfortable raising its spending again. Adjusted operating expenses grew 15% Y/Y to $412M.

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    This article was written by a staff member of TheStreet.