(Reuters) – Advanced Micro Devices Inc’s quarterly profit and income topped Wall Street targets because the chipmaker benefited from larger costs and demand for graphics chips utilized in private computer systems, gaming consoles and cryptocurrency mining.
The chipmaker’s forecast for current-quarter income additionally exceeded expectations, and AMD’s shares jumped greater than 9 % in after-hours buying and selling on Wednesday.
The inventory has climbed over 250 % previously two years because the Santa Clara, California-based firm advantages from demand for graphics chips utilized in computer systems, videogame consoles and for a wide range of different purposes.
To faucet rising demand for chips from knowledge facilities, AMD has additionally developed newer editions of server processors.
Demand for AMD’s Radeon collection of graphics merchandise remained robust within the first three months of the 12 months as new high-quality videogames had been launched, Chief Executive Lisa Su stated on a name with analysts.
“Our financial progress in the first quarter is attributable to the ongoing strength of Radeon and Ryzen products as well as continued early contributions from our EPYC products,” Chief Financial Officer Devinder Kumar stated, referring to AMD’s EPYC line of server merchandise and Ryzen PC processors.
AMD has additionally continued to learn from final 12 months’s growth in cryptocurrencies, as graphics chips present the excessive computing capability required for mining widespread digital currencies reminiscent of bitcoin and ethereum.
Cryptocurrency mining accounted for some 10 % of AMD’s general income within the first quarter, Kumar stated.
Still, gaming would proceed to be a “top priority” for the corporate, Su stated.
AMD reported a internet revenue of $81 million within the three months ended March 31, in contrast with a internet lack of $33 million a 12 months earlier.
Excluding one-time objects, AMD earned 11 cents per share, forward of analysts’ common estimate of 9 cents, in keeping with Thomson Reuters I/B/E/S.
Revenue jumped 40 % to $1.65 billion, topping expectations of $1.57 billion as gross sales at its key computing and graphics enterprise practically doubled.
AMD expects current-quarter income of $1.73 billion, give or take $50 million, whereas analysts had been anticipating income of $1.57 billion.
Reporting by Muvija M in Bengaluru; Editing by Arun Koyyur and Sai Sachin Ravikumar