AMD's Stock Pops Higher On Q1 Earnings Beat

Chipmaker Advanced Micro Devices, Inc. AMD beat the Street's first-quarter earnings estimate by a penny.

The Santa Clara, California-based company reported first-quarter adjusted EPS of 6 cents against a 5-cent estimate, and sales of $1.27 billion versus a $1.26-billion estimate.

AMD guided to second-quarter sales of $1.5 to $1.54 billion against a $1.52-billion estimate.

The company's revenue is down 23 percent year-over-year largely due to lower computing and graphics revenue, AMD said in a press release. A 10-percent quarter-over-quarter drop in revenue comes as a result of lower client processor sales, the company said.

AMD's first-quarter gross margin was 41 percent, a 5-percentage point rise year-over-year that the company said was fueled by the ramp of the Ryzen and EPYC processor and data center GPU sales.

"We delivered solid first quarter results with significant gross margin expansion as Ryzen and EPYC processor and datacenter GPU revenue more than doubled year-over-year," AMD President and CEO Lisa Su said in a statement. "We look forward to the upcoming launches of our next-generation 7nm PC, gaming and datacenter products which we expect to drive further market share gains and financial growth."

Shares of AMD were trading higher by 6.44 percent to $29.41 in after-hours trading Tuesday. The stock closed at $27.63.

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