AMD shares jumped 11 percent on Wednesday after the chipmaker reported better-than-expected first quarter results.
- Earnings: 11 cents per share, excluding certain items, vs. 9 cents per share as expected by analysts, according to Thomson Reuters.
- Revenue: $1.65 billion vs. $1.57 billion as expected by analysts, according to Thomson Reuters.
AMD also provided a forecast that topped estimates. The company said it's expecting $1.72 billion in revenue, give or take $50 million, in the second quarter, compared to analyst expectations for sales of $1.58 billion.
By the end of the year, AMD expects that companies will come out with 60 systems based on its Ryzen PC chip architecture by the end of the year, CEO Lisa Su said on a conference call with analysts after the earnings report came out.
AMD's Enterprise, Embedded and Semi-Custom segment declined 12 percent to $532 million, primarily due to a drop in semi-custom revenue, which includes chips customized for game console makers. The semi-custom decline is connected to a gain in licensing business that happened in the first quarter of last year -- specifically around a gaming console.
With its Epyc server chips, AMD has been trying to gain share in a market dominated by Intel. The chipmaker continues to expect to have mid-single-digit server chip unit share by the end of the year, Su said.
"I will say, for the first-generation Epyc, we're seeing really nice customer interest, and it's quite broad. And so it is across enterprise as well as the hyperscale customers. And we view this as a multigenerational play, so we're very excited about what Epyc can do over the next couple of quarters," Su said.