AMD shares jumped nearly 10 percent on Wednesday after the chipmaker reported better-than-expected first quarter results.
- Earnings: 11 cents per share, excluding certain items, vs. 9 cents per share as expected by analysts, according to Thomson Reuters.
- Revenue: $1.65 billion vs. $1.57 billion as expected by analysts, according to Thomson Reuters.
AMD also provided a forecast that topped estimates. The company said it’s expecting $1.72 billion in revenue, give or take $50 million, in the second quarter, compared to analyst expectations for sales of $1.58 billion.
Revenue in the first quarter jumped 40 percent year over year, AMD said. The biggest gains came from the company’s Computing and Graphics Business Segment, which climbed 95 percent to $1.12 billion.
AMD’s Enterprise, Embedded and Semi-Custom segment declined 12 percent to $532 million, primarily due to a drop in semi-custom revenue, which includes chips customized for game console makers. The semi-custom decline is connected to a gain in licensing business that happened in the first quarter of last year.
In the first quarter, AMD gained share from Nvidia in the graphics card market and took share from Intel in the desktop chip market, analysts at Susquehanna Financial Group said in a note on April 4.
AMD shares are down 5.5 percent since the beginning of the year, as of Wednesday’s close. During the quarter AMD reckoned with the fallout from the disclosure of the Meltdown and Spectre security vulnerabilities.
AMD will hold a conference call with analysts at 5:30 p.m. Eastern time.
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