Advanced Micro Devices late Tuesday beat analyst estimates for the second quarter thanks to record sales of processors for data centers. It also forecast sales above views for the current quarter. AMD stock rose in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 69 cents a share on sales of $5.84 billion in the June quarter. Analysts polled by FactSet had expected AMD earnings of 68 cents a share on sales of $5.72 billion. On a year-over-year basis, AMD earnings increased 19% while sales advanced 9%.
Data center revenue jumped 115% year over year to $2.83 billion. A steep ramp in shipments of AMD Instinct graphics processors for AI applications drove the sales increase, the company said. It also noted strong growth in 4th Gen AMD Epyc server processors.
AMD's client segment posted sales of $1.49 billion, up 49% year over year, driven by sales of AMD Ryzen PC processors.
Meanwhile, sales declined in AMD's gaming and embedded processor segments.
AMD Stock Pops After Report
For the current quarter, AMD forecast sales of $6.7 billion, up 16%, based on the midpoint of its outlook. Wall Street was modeling $6.61 billion in third-quarter sales.
In after-hours trading on the stock market today, AMD stock climbed 6.3% to 147.20. During the regular session, AMD stock dipped 0.9% to close at 138.44.
"We delivered strong revenue and earnings growth in the second quarter driven by record data center segment revenue," AMD Chief Executive Lisa Su said in a news release.
She added, "Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, Epyc and Ryzen processors. The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business."
AMD stock is on two IBD lists: Leaderboard and Tech Leaders.
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