Advanced Micro Devices (AMD) – Get Report beat Wall Street’s second-quarter earnings expectations Tuesday, boosted by surging revenue.
Shares of the Santa Clara, Calif., semiconductor titan were up 1% to $92 in after hours trading at last check.
AMD reported net income of $710 million, or 58 cents a share, compared with $157 million, or 13 cents a share, a year ago. Adjusted earnings came to 63 cents a share.
Revenue totaled $3.85 billion, up 99% from a year ago.
Advanced Micro Devices Second-Quarter Earnings Live Blog
Analysts surveyed by FactSet were expecting the company to report earnings of 54 cents on revenue of $3.62 billion.
Revenue growth was driven by higher revenue in both the computing and graphics segment and enterprise and embedded and semi-custom segment.
“Our business performed exceptionally well in the second quarter as revenue and operating margin doubled and profitability more than tripled year-over-year,” president and CEO Lisa Su said in a statement. “We are growing significantly faster than the market with strong demand across all of our businesses.”
The computing and graphics segment, which covers GPU and PC CPU sales, saw revenue total $2.25 billion, up 65% year-over-year and 7% quarter-over-quarter driven by higher client and graphics processor sales.
Enterprise, embedded and semi-custom segment revenue was $1.60 billion, up 183% year-over-year and 19% quarter-over-quarter. The increases were driven by higher EPYC processor revenue and semi-custom product sales, the company said.
Sales in this segment are dominated by server CPUs and game console SoC.
Looking ahead, AMD said it expects third-quarter revenue of roughly $4.1 billion, up about 46% year-over-year. FactSet is calling for revenue of $3.82 billion.
For the full year 2021, AMD now expects revenue growth of about 60%, up from prior guidance of roughly 50%, driven by strong growth across all businesses.
Last month, the company’s shares rose after a report said the European Commission hadn’t raised objections to the semiconductor titan’s proposed $35 billion takeover of peer chipmaker Xilinx (XLNX) – Get Report.
In April, AMD posted modestly better-than-expected first quarter earnings and forecast solid near-term sales amid improving chip demand and stronger pricing linked to the global semiconductor shortage.