Advanced Micro Devices Inc. rose in the extended session Tuesday after the chip maker said data-center revenue more than doubled and results topped Wall Street estimates.
shares rose 4% after hours, following a 0.2% decline in the regular session to close at $85.21.
“We had outstanding year-over-year revenue growth across all of our businesses and data center revenue more than doubled,” said Lisa Su, AMD president and CEO, in a statement. “Our increased full-year guidance highlights the strong growth we expect across our business based on increasing adoption of our high-performance computing products and expanding customer relationships.”
Sales from enterprise embedded and semi-custom chips — the unit that includes data-center and gaming-console revenue — nearly quadrupled to $1.35 billion, compared with $348 million a year ago. Analysts surveyed by FactSet expected $1.3 billion. Su’s comments about data-center revenue were helpful as AMD does not break out data-center sales from gaming sales.
The company reported first-quarter net income of $555 million, or 45 cents a share, compared with $162 million, or 14 cents a share, in the year-ago period.
After adjusting for stock-based compensation and other factors, the Santa Clara, Calif.-based company reported earnings of 52 cents a share, compared with 18 cents a share in the year-ago period. Revenue rose to $3.45 billion from $1.79 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast adjusted earnings of 44 cents a share on revenue of $3.18 billion on AMD’s forecast of between $3.1 billion and $3.3 billion.
AMD reported first-quarter sales of $2.1 billion for computing and graphics chips, up 46% from $1.44 billion last year, compared with analyst expectations of $1.89 billion.
AMD’s strong earnings come amid a continuing shortage of microchips to sate demand from global industries, and the companies that make the silicon wafers chip designs use, work to clear waiting lists that span several months.
AMD expects second-quarter revenue of $3.5 billion to $3.7 billion , while analysts expect $3.23 billion.
Over the past 12 months, AMD shares have gained 51%. In comparison, the PHLX Semiconductor Index
gained 87%, the S&P 500 index
gained 54%, and the tech-heavy Nasdaq Composite Index