chip maker Advanced micro-devices (AMD) came in above Wall Street’s second-quarter targets late Tuesday, but sales prospects for the current quarter were bright. AMD shares fell during extended trading.
The Santa Clara, California-based company earned an adjusted $1.05 per share on revenue of $6.55 billion in the June quarter. Analysts polled by FactSet expected AMD earnings at $1.03 per share on revenue of $6.53 billion. Year-over-year, AMD’s profits increased 67%, while revenues grew 70%.
For the current quarter, AMD forecasts revenue of $6.7 billion, up 55% year over year. However, Wall Street was looking for revenue of $6.84 billion in the third quarter.
For the full year, AMD now expects to generate revenue of $26.3 billion, up 60%. Analysts expected revenue of $26.21 billion.
AMD Shares Drop Reportedly
During after-hours trading in the stock market today, AMD stock fell 4.3% to 95. During Tuesday’s regular session, AMD stock rose 2.6% to close at 99.29.
“We delivered our eighth straight quarter of record revenue based on our strong execution and expanded product portfolio,” Chief Executive Officer Lisa Su said in a press release. “We see continued growth in the second half of the year, highlighted by our next-generation 5-nanometer product shipments and supported by our diversified business model.”
Sales of AMD’s data center chips increased 83% year over year to $1.5 billion in the second quarter. PC chip sales lagged, rising 25% to $2.2 billion.
AMD shares rank ninth out of 34 shares in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 83 out of 99.
IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories about consumer technology, software, and semiconductor stocks.
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