Advanced Micro Devices (AMD) reported stronger-than-expected first-quarter financial results. Shares of AMD soared 6% in after-hours trade Tuesday.
The chipmaker posted adjusted earnings per share of 6 cents, exceeding expectations for 5 cents per share, according to data compiled by Bloomberg.
AMD reported revenue of $1.27 billion, which was above consensus estimates for $1.26 billion in revenue. However, revenue from the Computing and Graphics segment fell 26% year over year to $831 million. The company said the decline was due to lower graphics channel sales but was offset by increased client processor and datacenter GPU sales.
“We delivered solid first quarter results with significant gross margin expansion as Ryzen and EPYC processor and datacenter GPU revenue more than doubled year-over-year,” CEO Lisa Su said in a statement. “We look forward to the upcoming launches of our next-generation 7nm PC, gaming and datacenter products which we expect to drive further market share gains and financial growth.”
For the second quarter, AMD expects revenue between $1.48 billion to $1.57 billion. Estimates among analysts was for second-quarter revenue of $1.52 billion.
AMD shares have rallied 48% this year and have outperformed the Philadelphia Semiconductor Index (^SOX), which has jumped 35% in the same time period. AMD was the best-performing stock in the S&P 500 (^GSPC) in 2018.
AMD’s earnings conference call is scheduled for 5:30 p.m. ET.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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