AMD Stock Surges on Record Data Center Revenue

Advanced Micro Devices (AMD) reported second-quarter income that hit analysts' expectations, driven by grounds gross from its information halfway segment.

The chipmaker posted gross of $5.8 billion, up 9% from nan year-ago play and supra nan analysts' estimates. Net income astatine $265 cardinal aliases 16 cents per stock missed projections, though excluding one-time items, adjusted earnings of 69 cents per stock hit estimates.

AMD's Data Center Revenue Doubles arsenic AI Demand Booms

AMD’s top-line gains came arsenic information halfway gross much than doubled year-over-year to a quarterly grounds of $2.8 billion, arsenic request for nan company's artificial intelligence (AI) chips surged.

“The accelerated advances successful generative AI are driving request for much compute successful each market, creating important maturation opportunities arsenic we present activity AI solutions crossed our business," AMD CEO Lisa Su said. 

AMD said it anticipates $6.7 cardinal successful income successful nan 3rd quarter, somewhat higher than analysts expected, according to estimates compiled by Visible Alpha.

Su said nan institution expects to “deliver beardown gross maturation successful nan 2nd half of nan twelvemonth led by request for Instinct, EPYC and Ryzen processors." 

Shares of AMD jumped much than 7% to $138.44 successful extended trading arsenic of 6:20 p.m. ET Tuesday pursuing nan company's net release.