Promotions Advanced microdevices 09.30 NASDAQ: AMD jumped 12.5% to a new high to an average of $ 76.09 on Wednesday, following impressive results from the second quarter of the semiconductor company.
AMD’s revenue for the year increased 26% to $ 1.93 billion, driven by increased market share and strong sales of Ryzen and EPYC processors. “We achieved high second-quarter results led by sales of laptops and server processors, as Ryzen and EPYC’s revenues more than doubled compared to a year ago,” said CEO Dr. Lisa Soo in a press release.
Even better, sales of Ryzen and EPYC processors generate higher profit margins for AMD than sales of some of its other chips. In turn, AMD’s gross margin for the year increased by 3 percentage points to 44%.
AMD’s adjusted operating and net income reportedly more than doubled to $ 233 million and $ 216 million, respectively.
These outstanding results have prompted AMD to step up its year-round financial benchmarks. The company currently forecasts revenue growth of around 32% in 2020, thanks to the results of widespread enhancement on its personal computer, data center and gaming products.
“Despite some macroeconomic uncertainty, we are increasing our full-year revenue forecast as we move to the next phase of growth, driven by the acceleration of our business in many markets,” Su said.