AMD pops after it raises revenue forecast for the year
- AMD raised its guidance for full-year revenue growth.
- The company saw competitor Intel delay its next-generation chips last week.
AMD shares rose as much as 10% in extended trading on Tuesday after the company upgraded its revenue guidance for the current year as part of its second-quarter earnings results.
Here's how the company did:
- Earnings: 13 cents per share, adjusted, vs. 16 cents per share as expected by analysts, according to Refinitiv.
- Revenue: $1.93 billion, vs. $1.86 billion as expected by analysts, according to Refinitiv.
The chip-maker's revenue grew 26% year over year in the quarter, which ended on June 27, according to a statement. Revenue from the computing and graphics category that includes chips and graphics processing units for desktop PCs and laptops came to $1.37 billion, up 45% and meeting expectations of analysts surveyed by FactSet.
The company's guidance for the fiscal third quarter was $2.55 billion in revenue, give or take $100 million. Analysts surveyed by Refinitiv had been looking for $2.32 billion in revenue for the quarter.
AMD now expects 32% revenue growth for the year, up from 25% growth the company predicted in April. Analysts polled by Refinitiv had expected 25% growth. The company now expects the PC market to grow, rather than decline, in the second half of the year, CEO Lisa Su said on a conference call with analysts on Tuesday. And Microsoft and Sony will be releasing new products featuring AMD components later this year.
"We expect strong second-half semi-custom growth as we read production to support the holiday launches of the new PlayStation 5, and Xbox Series X consoles," Su said.
The results come days after competitor Intel said it was delaying the release of products featuring 7-nanometer transistors until 2022 or 2023. AMD already sells 7-nanometer chips. Last Friday, after Intel made its announcement, AMD stock rose almost 17%, while Intel fell more than 16%. Notwithstanding the after-hours move, AMD stock is up 47% since the start of the year.