Chipmaker AMD's second-quarter revenue, profit tops estimates

(Reuters) – Advanced Micro Devices Inc (AMD.O) beat analysts’ estimates for quarterly profit and revenue on Wednesday, as a rare surge in demand for personal computers boosted sales of its processors as well as graphics chips used in computers and data centers.

FILE PHOTO: A man looks at motherboards displayed at the AMD booth during the Computex 2011 computer fair at the TWTC Nangang exhibition hall in Taipei May 31, 2011. REUTERS/Pichi Chuang/File Photo

The company’s shares rose more than 7 percent in after-hours trading.

The Santa Clara, California-based company’s shares have more than doubled in the past two years on continued demand for graphics chips used in computers, videogame consoles and a variety of other applications.

AMD said sales in its graphics and computing business, which makes processors for servers and gaming consoles, rose 64 percent to $1.09 billion, primarily driven by its Ryzen desktop processors and Radeon graphics cards.

But it declined 3 percent quarter-over-quarter primarily due to lower revenue from GPU products in the blockchain market.

Net income was $116 million, or 11 cents per share, in the second quarter ended June 30, compared to a loss of $42 million, or 4 cents per share, a year earlier.

Excluding items, the company earned 14 cents per share, beating analysts’ average estimate of a profit of 13 cents, according to Thomson Reuters I/B/E/S.

The chipmaker’s revenue rose 53 percent to $1.76 billion, beating estimates of $1.72 billion.

Reporting by Arjun Panchadar in Bengaluru; Editing by Shounak Dasgupta