Shares of Advanced Micro Devices (AMD) - Get Report  were surging 9.2% to $15.46 in morning trading on Wednesday, the day after the chipmaker reported stellar second-quarter results. 

The Sunnyvale, Calif.-based semiconductor company posted earnings of 2 cents a share, while Wall Street was expecting earnings to be flat. Revenue climbed 19% from a year earlier to $1.22 billion and topped the $1.16 billion analysts were expecting. 

The company attributed its revenue beat to sales in its computing and graphics segment, particularly as the company released new Ryzen PRO desktop processors and Radeon graphics cards in the past quarter.

"We are very pleased with our improved financial performance, including double-digit revenue growth and year-over-year gross margin expansion on the strength of our new products," AMD CEO Lisa Su said during the earnings call. 

AMD also pleased investors with its upbeat guidance for the third quarter. The company expects revenue to come in between $1.46 billion and $1.54 billion, vs. analysts' expectations of $1.39 billion. The company expects to continue to benefit from new products in the next quarter and said it is working on ramping up production to meet demand. 

The stock has had an incredible run over the past year with shares advancing 141.61% since July 2016. 

Michael McConnell, Pacific Crest (Sector Weight, price target NA)

"We believe improved revenue and margins outlooks have been reflected in AMD's current share price. Further share upside will likely depend on GPU and CPU share gains from Vega and Zen in 2017/2018, or additional IP licensing deals with customers."

Ambrish Srivastava, BMO Capital Markets (Downgraded to Market Perform from Outperform, $15 price target)

"We believe shares of AMD are fairly valued at current levels and are factoring in a lot of continued favorable news and earnings power, which we do not see materializing. While we laud AMD for near-flawless execution on its product road map, and expect the company to take share in all the new markets it is targeting, we just do not see meaningful ensuing earnings. Compared to our earlier stance when we had found the risk/reward very attractive, at current levels, we do not see an attractive risk/reward profile."

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