Chipmaker Advanced Micro Devices (AMD) late Tuesday smashed Wall Street’s estimates for the first quarter and guided higher for the current quarter and full year. AMD stock rose in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 52 cents a share on sales of $3.45 billion in the March quarter. Analysts expected AMD earnings of 44 cents a share on sales of $3.21 billion. On a year-over-year basis, AMD earnings rocketed 189% while sales jumped 93%.
For the current quarter, AMD expects to generate sales of $3.6 billion, up 86% year over year. Wall Street had predicted $3.29 billion in sales for the second quarter.
For the full year, AMD now expects revenue growth of about 50% over 2020. That’s up from its prior guidance for about 37% growth in 2021.
AMD Stock In Consolidation Period
“Our business continued to accelerate in the first quarter driven by the best product portfolio in our history, strong execution and robust market demand,” Chief Executive Lisa Su said in a news release. “We had outstanding year-over-year revenue growth across all of our businesses and data center revenue more than doubled.”
She added, “Our increased full-year guidance highlights the strong growth we expect across our business based on increasing adoption of our high-performance computing products and expanding customer relationships.”
In after-hours trading on the stock market today, AMD stock jumped 4%, near 88.65. During the regular session Tuesday, AMD stock dipped 0.2% to 85.21.
AMD stock has been consolidating for the past 16 weeks at a buy point of 99.33, according to IBD MarketSmith charts.
TI Posts Beat-And-Raise Report
Elsewhere in semiconductor stocks, Texas Instruments (TXN) posted better-than-expected first-quarter results late Tuesday.
Dallas-based TI earned $1.87 a share on sales of $4.29 billion in the March quarter. Analysts expected TI earnings of $1.58 a share on sales of $3.99 billion in the period. On a year-over-year basis, Texas Instruments earnings rose 51% while sales increased 29%.
For the second quarter, TI expects to earn $1.80 a share on sales of $4.3 billion. That’s based on the midpoint of its outlook. Wall Street had predicted TI earnings of $1.68 a share on sales of $4.16 billion in the June quarter. In the year-earlier period, Texas Instruments earned $1.48 a share on sales of $3.24 billion.
Texas Instruments stock fell 2.8%, near 184.90, in late trading Tuesday.
TXN stock has an IBD Composite Rating of 90 out of 99. By comparison, AMD stock has a Composite Rating of 81. 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 on consumer technology, software and semiconductor stocks.
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