Shares of Advanced Micro Devices (AMD) jumped Wednesday after the chipmaker topped analyst expectations for the second quarter and guided higher for the current quarter and full year. AMD stock leapt more than 7%.
The Santa Clara, Calif.-based company reported Tuesday that it earned an adjusted 63 cents a share on sales of $3.85 billion in the June quarter. Analysts had forecast AMD earnings of 54 cents a share on sales of $3.62 billion. On a year-over-year basis, AMD earnings surged 250% while sales increased 99%.
“Our business performed exceptionally well in the second quarter as revenue and operating margin doubled and profitability more than tripled year over year,” Chief Executive Lisa Su said in a news release.
She added, “We are growing significantly faster than the market with strong demand across all of our businesses.”
AMD Stock Surges
On the stock market today, AMD stock surged 7.6% to close at 97.93.
For the current quarter, AMD expects to generate revenue of about $4.1 billion, up 46% year over year. Wall Street had predicted $3.82 billion in sales for the third quarter.
For the full year, AMD now expects revenue growth of about 60%, up from its prior guidance of about 50%.
AMD stock has formed a cup-with-handle base with a buy point of 95.54, according to IBD MarketSmith charts.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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