AMD reported better-than-expected second quarter results as it saw strong demand across its product lines. The chipmaker also upped its outlook for 2021.
The results[1] land after strong results from Intel[2], which is expanding its foundry business[3]. AMD is benefiting from gaining share in the data center as well as PCs.
The company reported second quarter earnings of 58 cents a share on revenue of $3.85 billion, up 99% from a year ago. Non-GAAP earnings were 63 cents a share.
Wall Street was expecting AMD to report second quarter revenue of $3.62 billion with non-GAAP earnings of 54 cents a share.
As for the outlook, AMD said it expects revenue for the third quarter will be about $4.1 billion give or take $100 million. That revenue growth, driven by AMD's gaming and data center business, would be up 46% from a year ago.
Wall Street was modeling third quarter revenue of $3.82 billion.
For 2021, AMD is projecting revenue growth of about 60%, up from the 50% previously outlined. Gross margins for the year will be about 48%.
Other items:
- Computing and graphics revenue was $2.25 billion, up 65% from a year ago. PC processor average selling price was up due to Ryzen desktop and notebook chips. GPU average selling prices also grew.
- Enterprise, embedded and semi-custom unit revenue was $1.6 billion, up 183% from a year ago. EPYC processor demand drove sales.
- AMD ended the third quarter with cash, cash equivalents and short-term investments of $3.79 billion.