AMD Stock Skyrockets After Topping Estimates
AMD stock price soared more than 10% in post-market trading as the company easily topped both revenue and earnings estimates for the second quarter. Stronger than expected third-quarter guidance added to investor’s sentiments.
Its second-quarter revenue of $1.93 billion increased 26% from the past year period, beating the consensus estimate by $70 million.
The revenue growth is driven by strong computing and graphics sales of $1.37B, representing an increase of 45% Y/Y. Record notebook and server processor revenue helped Ryzen and Epyc revenue to double compared to the past year period.
Moreover, the company has painted a bright outlook for the rest of the year.
It expects third-quarter revenue to hit $2.45-2.65 billion levels, up almost 42% year over year and 32% sequentially. The market analysts are expecting third revenue in the range of $2.3B.
For the full year, AMD forecasts revenue growth around 32% from the past year, thanks to robust revenue growth from gaming, and data center products.
“We delivered strong second-quarter results, led by record notebook and server processor sales as Ryzen and EPYC revenue more than doubled from a year ago,”
Dr. Lisa Su – AMD CEO
said Dr. Lisa Su, AMD president and CEO.
“Despite some macroeconomic uncertainty, we are raising our full-year revenue outlook as we enter our next phase of growth driven by the acceleration of our business in multiple markets.”
AMD stock price surged to a new all-time high of $74 a share after the earnings release. Its shares are up more than 100% in the last twelve months.
The market analysts are seeing further upside for AMD stock. For instance, Lynx Equity Strategies claims that AMD shares could hit $80 mark in the days to come, with $100 billion in market capitalization.
The firm said, “Intel’s 7nm product delay represents a “gargantuan earthquake” for the sector, which could result in “a fundamental re-alignment of the ground beneath the PC/server industry.”