Advanced Micro Devices (AMD) is a leading manufacturer of computer processors and associated technologies for various industries. It enjoys a major share in the global chip market due to its technological superiority over rivals, including Intel.
The company is best known for its computing and graphic chips. The solid demand for its chips continues to drive its revenue. As a result, AMD’s financial results are constantly improving. To get a clear idea of how fast the company’s business is growing, we will look at its financial results for the second quarter.
AMD reported earnings of 58 cents per share for the quarter ended June 26, significantly higher than 13 cents per share in the same period last year. Excluding items, the company earned 63 cents per share on an adjusted basis, compared to just 18 cents per share in the year-ago quarter.
Total revenue for the quarter climbed 99 percent on a year-over-year basis to $3.85 billion, mainly driven by a strong performance from its computing and graphics business. The results exceeded the consensus forecast of 54 cents per share for earnings and $3.62 billion for revenue.
Looking forward, AMD expects to report revenue of around $4.1 billion for the third quarter. The outlook translates to a year-over-year surge of 46 percent.
AMD’s business is booming as it continues to take away market share from rivals. The improving financial performance is also fueling the growth of AMD stock, which has surged nearly 30 percent during the 12 months and nearly 13 percent so far in 2021. Moving forward, AMD stock is expected to gain more value considering its solid sales outlook for the current quarter.