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Advanced Micro Devices Inc. shares rose in the extended session Tuesday after the chip maker said sales from its data-center and gaming segment nearly tripled and increased its outlook for the year again.
AMD
AMD,
reported second-quarter net income of $710 million, or 58 cents a share, compared with $157 million, or 13 cents a share, in the year-ago period. After adjusting for stock-based compensation and other factors, the Santa Clara, Calif.-based company reported earnings of 63 cents a share, compared with 18 cents a share in the year-ago period. Revenue rose to $3.85 billion from $1.93 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast adjusted earnings of 54 cents a share on revenue of $3.62 billion, after AMD projected between $3.5 billion to $3.7 billion. Shares rose 2% in after-hours trading, following a 0.9% decline in the regular session to close at $91.03.
Sales from enterprise embedded and semi-custom chips — the unit that includes data-center and gaming-console revenue — nearly tripled to $1.6 billion, compared with $565 million a year ago. Analysts surveyed by FactSet expected $1.44 billion. Traditionally, AMD has not broken out data-center sales separately from gaming sales.
Read: The chip crunch marches on, but one sector could be in store for relief
“Our business performed exceptionally well in the second quarter as revenue and operating margin doubled and profitability more than tripled year-over-year,” AMD Chief Executive Lisa Su said in a statement. “We are growing significantly faster than the market with strong demand across all of our businesses.”
Last week, Intel Corp.
INTC,
reported a better-than-feared 9% decline in data-center sales, but its forecast amid a global chip shortage did little to bolster the stock.
Read: Intel changed the name of its chips, but analysts say the story hasn’t changed
AMD reported second-quarter sales of $2.25 billion for computing and graphics chips, up from $1.37 billion last year, compared with analyst expectations of $2.17 billion.
AMD expects third-quarter revenue of $4 billion to $4.2 billion, while analysts had been projecting $3.82 billion, according to FactSet.
See also: Intel appears to be feeling the competitive heat from AMD
Executives hiked AMD’s guidance for the full year yet again, and now projects sales to grow about 60% year over year compared with a forecast of 50% growth in the previous guidance. AMD reported revenue of $9.67 billion last year, so that suggests sales of about $15.47 billion this year, while analysts were forecasting revenue of $14.65 billion, according to FactSet.
The chip sector is dealing with supply shortages, and more results will be revealed this week, with Qualcomm Inc.
QCOM,
and Lam Research Corp.
LRCX,
earnings on Wednesday and KLA Corp.
KLAC,
earnings on Thursday.
Over the past 12 months, AMD shares have gained 32%. In comparison, the PHLX Semiconductor Index
SOX,
has gained 52%, the S&P 500 index
SPX,
has risen 36%, and the tech-heavy Nasdaq Composite Index
COMP,
is up 39%.
