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HomeMarket NewsAMD shares jump 16%, extend gains from best month in 25 years, after strong results, guidance
For the ongoing quarter, AMD sees revenue to be $11.2 billion, plus or minus $300 million, again higher than analyst expectations of $10.5 billion.
Shares of Advanced Micro Devices (AMD), the chip manufacturer that rivals Nvidia, surged as much as 15% in extended trading after the company reported strong results for the quarter gone by and guided for the current quarter to be stronger.
Revenue for the quarter increased by 38% from the year-ago period to $10.25 billion, higher than estimates of $10.25 billion. Earnings Per Share also surged to $1.37, higher than projections of $1.29.
Data Center sales increased by 57% year-on-year to $5.8 billion and the company's CEO Lisa Su said that this business has now become the primary earnings contributor to AMD.
For the ongoing quarter, AMD sees revenue to be $11.2 billion, plus or minus $300 million, again higher than analyst expectations of $10.5 billion.
Continued surge in demand for chips to power Artificial Intelligence workloads is contributing to these strong results.
“Looking ahead, we expect server growth to accelerate meaningfully as we scale supply to meet demand,” Su said. The CEO also went on to add that the company has "strong and increased" confidence in its ability to reach "tens of billions of dollars in data center AI revenue next year".
AMD shares have been on a role this year, with April turning out to be the best month that the stock had in 25 years. The stock jumped last week after it announced that it will join hands with Intel on a new instruction set for x86 CPUs. The new feature could increase performance and energy efficiency by boosting computer density by 16 times.
The company is also likely to ship its first full rack-scale system for its AI data centers, called Helios, later this year. This will compete with Nvidia's Grace Blackwell and Vera Rubin systems, which cost over $3 million. Both OpenAI and Meta have already signed up for Helios shipments.
AMD shares ended 16.5% higher in extended trading, adding to their year-to-date gains of nearly 16%. If these gains sustain, the stock will open at record high levels on Wednesday.
