Shares of Advanced Micro Devices (NASDAQ: AMD) Wednesday jumped 12.5% to a new close of $ 76.09, following the semiconductor company’s impressive second-quarter results.
AMD’s revenue rose 26% year-over-year to $ 1.93 billion, bolstered by market share gains and strong sales of its Ryzen and EPYC processors. “We delivered strong results in the second quarter of the year, driven by record notebook and server processor sales as Ryzen and EPYC revenue more than doubled from a year ago,” said Chief Executive Dr Lisa Su in a press release.
Better still, selling Ryzen and EPYC processors generates a higher profit margin for AMD than selling some of its other chips. For its part, AMD’s gross margin improved by 3 percentage points year-over-year to 44%.
All that said, AMD’s adjusted operating revenue and net revenue more than doubled to $ 233 million and $ 216 million, respectively.
These outstanding results forced AMD to boost its year-round financial guidance. The company is now forecasting revenue growth for 2020 of around 32%, driven by broad-based earnings in its personal computer, data center and gaming products.
“Despite some macroeconomic uncertainty, we are increasing our full-year revenue outlook by entering our next phase of growth driven by the acceleration of our business in multiple markets,” Su said.