AMD Stock Surges on Record Data Center Revenue

Superior Micro Gadgets (AMD) reported second-quarter gross sales that beat analysts’ expectations, pushed by report income from its information middle phase.

The chipmaker posted income of $5.8 billion, up 9% from the year-ago interval and above the analysts’ estimates. Web revenue at $265 million or 16 cents per share missed projections, although excluding one-time objects, adjusted earnings of 69 cents per share beat estimates.

AMD’s Information Heart Income Doubles as AI Demand Booms

AMD’s top-line good points got here as information middle income greater than doubled year-over-year to a quarterly report of $2.8 billion, as demand for the corporate’s synthetic intelligence (AI) chips surged.

“The fast advances in generative AI are driving demand for extra compute in each market, creating important progress alternatives as we ship management AI options throughout our enterprise,” AMD CEO Lisa Su mentioned. 

AMD mentioned it anticipates $6.7 billion in gross sales within the third quarter, barely greater than analysts anticipated, in keeping with estimates compiled by Seen Alpha.

Su mentioned the corporate expects to “ship sturdy income progress within the second half of the 12 months led by demand for Intuition, EPYC and Ryzen processors.” 

Shares of AMD jumped greater than 7% to $138.44 in prolonged buying and selling as of 6:20 p.m. ET Tuesday following the corporate’s earnings launch.