Shares of Advanced Micro Devices Inc. (AMD) rose sharply after the chip maker reported fourth quarter earnings that met estimates but revenue that missed.
The stock was rising 7% to $20.66 a share in after hours trading on Tuesday, after having fallen 4.61% to $19.25 in regular hours trading.
AMD posted adjusted earnings-per-share of 8 cents, in line with estimates of an adjusted 8 cents. Revenue was $1.42 billion, slightly below estimates for $1.44 billion.
Computing and graphics revenue was $986 million, beating estimates of $939 million. Enterprise embedded and semi-custom revenue was $433 million, below estimates of $494 million.
Management guided for first quarter 2019 revenue of roughly $1.25 billion, plus or minus $50 million, below estimates of $1.47 billion. AMD expects adjusted gross margins to be about 41% for the upcoming quarter. That's slightly higher than the expected 40.5% gross margin.
"Despite near-term graphics headwinds, 2019 is shaping up to be another exciting year driven by the launch of our broadest and most competitive product portfolio ever with our next-generation 7nm Ryzen, Radeon and EPYC products," said Dr. Lisa Su, AMD president and CEO, in a press release.
AMD shares have risen 2.2% this year.
Rival chipmaker Nvidia (NVDA) pre-announced much weaker-than-expected results for its fourth quarter on Monday.